Susana Montero Reyes plans to open an organic skin care spa and salon in Marina Del Rey, California. She aims to provide high quality, organic skin care products and massage services at affordable prices while prioritizing customer satisfaction. Reyes recognizes competition from other spas and salons and plans to distinguish her business by ensuring exceptional customer service and using organic ingredients. She anticipates needing $150,000 in startup loans and projects being able to repay the loans within 5-10 years if her new business is successful.
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General Company Description
In my business I will be the owner and masseuse. I hope to go to the Body Therapy Institute to obtain my
certification in massage therapy. I will massage backs, legs, etc. The reason I want to open up a salon is
that I want to give people self-confidence. I would like to help people emotionally and make them feel
pretty inside and out, also give them that feeling they can accomplish anything they want in life.
My goal for my business is that we satisfy the customer and give them whatever they want at
aneconomical price. The thing that is important for my business is satisfying the customer and making
them feel like they are in their own home. The employees often get forgotten,so I also want them to love
their work, not hate it,so I want them to feel like home too.
My industry is the sale of make-up, fragrances, and skin and hair products. Beauty salons and spas are
considered the cosmetology services of this industry. This industry is expected to grow 3.8 % annually. I
would besole proprietor of my business because I would be in total control of my business; also I would
know what is going on with my business. Even if it’s not easy to do it all by yourself I say it’s better to do
it by yourself.
Product and Services
Even if cosmetology is all about making over the customer,this is not only my job.My job is to make sure
the customer is taken care of and make sure the customer is not allergic to the ingredientsthat we use in
the organic skin lotion. The product that we will use in my business is going to be made by me so I would
know what is in my product if anybody asks me.The factor that is going to give me an advantage is that I
am going to be determined to be the best in the industry. The disadvantage is that if some of my
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customers do not like my product they are going to go leave me to go with my competitor. The price that I
will provide for the customer will be about $75 for skin care massage.
Marketing Plan
Why do I want to open up my own business? I want to open my own business because I want everybody
who will come to my business to feel that they can depend on me giving the best service not like other
salons that say that there are the best when they are not using the best products and being rude to the
customer. That’s why I want to open the best salon.
How am I going to get the word out about my business? I am going to have a website about my business.
It will have basic information about my product and other things like the service’s and hour we open my
salon.
Economics
I think that my total marketing size of my industry is about 50 % or over. The demand for cosmetology
industries is about 9.7 percent. The growth trend is said to be the organic spa segment. The potential
growth is said to be about 14 % in the feature. The barrier about me opening my own spa is that there is a
lot of competition.
How will I overcome these barriers?
I am going to try my best to give the customer the best quality service in the industry. So they can
love my service.
Change in technology
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If they would ever change the technology it really wouldn’t change my business that much it
would change just by us not using the computers so we would have to add everything on paper,
but that would not be a challenge for me because I am good at calculating.
Change in government regulations
If the government would ever change the regulation it would change my business depending on
what regulation would be change.
Change in the economy
The change in the economy could be good or bad depending if it increases or decrease, but If it
decrease to the point that we are in a rescission I will lower my price for people to still come in
and try to give them a relief from the recession to make them feel they spend their money well
coming to my spa.
Change in the industry
If there is any change in my industries I think that I’ll overcome them by just doing what I am
supposed to do and try my best in do in it well.
Product
The product that I will use for my skin lotion will be organic and good for the customer and the
environment. The reason is because if I would have an organic spa is because it is a trend in this industry
and because I care for the environment. So as a customer’s point of view I would think that if the service
is organic it’s good for you.
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Customers
The customer is the most important element in every industry. The customer I am leading to is adults that
are looking for relaxing, and having a fun time at my spa. The age I am targeting is 18 and older of age in
women and men. The location I want open this spa is in hopefully in Marina Del Rey, CA because the
income level varies annually depending what is your experience and your service. I think that middle
class will come to my spa because of my great economical prices for fair qualities products.
Competition
The thing that I will probably compete with is quality because my quality is going to be fair and
customers are looking for the best so I think I will compete with that. My competition is anyone in the
beauty industry. They will compete with me with better services they will provide and try to have better
advertising then me. I think that the biggest competitor for me is the beauty salon because they provide
almost everything like spas do but just a few different things. The thing I think they’re going to compare
is how good my services are and what I do wrong.
Competitive Analysis
Factor Me Strength Weakness Mohonk
Mountain Spa
Bath and
body works
Importance to customer
Products Skin lotions It will be
organic.
People may be
allergic to it.
Skin lotions Skin lotions Customers care about
their skin because it’s
important for their
health.
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Price $70 That it is not
too high but
not too low.
That I might lose
money.
$85 $20 Customers like saving
every penny they can
save.
Quality fair It’s good
and
economical.
People like the best
and like spending
their money on
stuff that worth it.
best Poor Customers like the best
but also like economical
prices.
Reliability My product Its organic People might like
organic
Quality Price It matters if for the
customer to trust
business
Stability No dramatic
changes are
going to be
made.
The organic
feel
My spa is going to
be old style
Not going
change
location.
Their stores
are spread
around.
It matters because the
customer needs to know
the money they’re
spending on the business
is stable
Expertise Hoping to be
masseuse
My
massaging
technique
customers Hair and skin
care.
Skin Customers like knowing
the job is going to be
done right instead of
waiting of a outcome
Location Hoping that
I’ll get myself
to Marina Del
Rey, CA.
Its scenery
is great
People might not
travel to CA
New Paltz,
NY
Spread
around the
world.
People like knowing
where they are going if
it’s a great place or a bad
place
Credit polices Credit and
Cash
Great credit
policy
I do not except bad
credit
Credit Credit and
Cash
People might not have
any credit card
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Advertising Media Eye
catching
Might not be good
enough for the
customer
Media Media It show how much
money your business has
My Niche
My niche would be that I like to give 110% to what I put my mind up to, I am also responsible and
careful. I will make sure that the customer is safe and enjoys their treatment. I am very honest so if see a
customer with a bad hair style I am going to point it out and try to fix it. I think customers are going to
like me because of these qualities and come to my spa.
Promotion
How will I get my word out there? I am going to have bill boards, website, etc. The reason media is
important in this industry is because when people read good review about products or services they want
it or want to experience that services. The way I want the customer to see me as in the media is that I am
the best and that they do not want to experience this service nowhere else but mine. My budget will be
about $100,000 depending on what am promoting. My prices are going to be economical so people can
afford them. They want be too high but they can’t be so low that I can’t make any profit from it. I will try
to get lower then my competition so I get more customers than them.
Operational Plan
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My daily schedule will start with me open up then get ready to open at 8:00 a.m. Then I will ill close at
10:00 p.m. so then I will do the washing and drying for the next day, and cleanup .Then I will do the same
thing the next day.
Production
My service will be in Marina Del Rey in California. My production techniques are going to be visual.
The quality control of my services will be checked every month so I can ensure the customers that the
service is really good and safe. The customer service I will provide is really good and satisfy to make the
customer feel good and relax. My inventory will be having my skin care lotion. My product development
will consist of me making my organic skin care lotion.
Location
The thing I need for my location to be the best is a great view near the sea. The location will look like
glamorous and relaxing place. The requirements for location are at least two acres, at least a three-story
building. I am not sure of the zone but I would need a lot of outlets so I can plug in my beauty supplies.
There will be a parking lot in front of the spa so the customer does not worry about the parking fee. The
most I think I’ll spend in the spa will be at least over $10,000 monthly on utilities and payments.
Legal Environment
The license I need to open up my spa is a business license, Occupational and Professional Licensing. The
permit I need is a state permit. The regulation involve that wedon’t dispose of any bad products in the
environment and to make sure we don’t pollute the environment and much more things. The zone code is
to buy property or renovating your salon in the existing property. The insurance my business needs
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is Business Interruption, Equipment Breakdown, Employment Practices Liability, Data Compromise and
Identity Recovery, and business property coverage. My trademark will be Naturally You, I will copy
rights my business name, and my organic skin lotion so nobody can take them.
Personnel
The number of employees I will start with is 10. The employees will need to be professional in their jobs.
The employees need to be honest and loyal to the customer should also be very polite. They should know
how to do their job so there will not have any training unless they really need it. The employees are going
to be hire depending on what they’re professionals on in the cosmetology industry. Their pay structure
will depend on how many people the employee takes in their booth.
Executive Summary
Fundamentals are also an important thing in every business. You have to be on top of everything that
happens in your business. My service will be producing a lot of organic skin lotions. So, hopefully this
trend helps me earn the customer’s interest. I will try the best to comfort the customers and the
employees. I think the future for business will go up and down because nothing always goes the way you
plan it, but I hope to be a great spa. I hope that my industry grows so I will grow with it. I may get a loan
for $150,000 so I can get start on buying my supplies I need like utilities, rent, etc. This loan might bring
me a profit, but I think I will be able to repay this loan in about five to ten years depending on how my
business goes, but I hope it goes great.