Beauty Touch Biz Plan
Beauty Touch Biz Plan
Beauty Touch Biz Plan
Beauty Touch aims to change the way beauty services are delivered in Nigeria by offering on demand
beauty services. The core focus of operations is on providing make-up and personal care services.
Beginning with operations in Abuja, Beauty Touch has a lean model that can be expanded across
multiple cities in Nigeria offering huge growth opportunities. For the beauty segment, healthy organic
growth is targeted. The focus is on making sure that the service providers are punctual, the quality of
work is high and the pricing is transparent, to attain more customers. Since this is a personalized service,
great attention is on the execution of the service to ensure consistency and quality.
Fundamentally, there are three C’s that drive a customer’s decision to opt for a beauty service option:
cost, comfort and convenience. With the abundance of beauticians and presence of technology that
enables improved connectivity, offering beauty services at home is now possible at an affordable cost
structure. Beauty Touch addresses three key challenges faced by women:
Long waiting lines: An average appointment in the salon can result in waiting time of thirty
minutes to an hour. Beauty Touch reduces that to zero by being on-time and focused entirely on
the customer in their home.
Uncertainty in Outcome: Beauticians at salon often promise being able to replicate any look
from the internet with disappointing results causing frustration in customers. Beauty Touch
offers a defined range of looks to reduce the frustration with outcome.
Hectic Lifestyle: Women are more pressed for their time than ever before with demanding
lifestyle. Beauty Touch saves them the hassle of traffic congestion and being able to get more
done at home.
Business Description
An on-demand beauty service covering make-up and personal care, Beauty Touch has a solution for
women with a demanding lifestyle. Every woman wants to look beautiful, but with less time and
patience than ever before, women need a quick and quality solution to pamper themselves.
Therefore, Beauty Touch offers a service with an easy to use interface, with orders being processed
online via website, on WhatsApp and by call. Changing the rules of the game, Beauty Touch provides
quality services at home.
Our Mission
Our Motto
• Convenience: Providing quality doorstep services to the clients that saves time and eliminate the
hassle of going to the salon and waiting in long lines.
• Reputation: Certified beauty professionals with ample years of experience in the beauty industry.
• Credibility: Different available makeup looks that reduces the customer’s uncertainty related to the
final outcome.
• Verified and Trusted: All beauticians working with beauty touch have their background check done and
are cleared before being sent to client’s house.
• Saves Time and Effort: Customers do not have to wait in lines for their turn, but have beauticians
arrive at their house on-time, each time to get hassle free service.
• Hygienic Service: All products and applicators used are washed and sterilized properly to ensure that
they meet the highest quality standards.
• Easy Booking: Offering an array of ways to contact Beauty Touch for clients, the service can be booked
online or via mobile.
• Wide Selection of Makeup Looks: Clients can select the look they desire from a wide selection of
makeup looks, reducing the uncertainty in the outcome, giving clients a greater control of the process.
Industry Background
The term “Home Beautician” has been around in the market, but as a small-time business. The process
of availing beauty services at home, at work or at a customer’s choice of place away from a beauty salon
is a fast evolving concept in Nigeria with the advent of technology and abundant supply of beauticians
that make this service feasible. More than 3,371,000 women in Abuja alone are interested in beauty
services, based on data from Facebook. Within Wuse2 400,000 women are regular clients of beauty
services. This offers a lucrative size of the market that can be attained by Beauty Touch The beauty
industry is highly fragmented, with few large chain salons and majority small neighborhood salons. An
abundance of beauticians are available with multiple makeup academies. The differentiating factor is
the aesthetic sense of makeup.
Competitive Analysis
The number of different types of beauty salon in Abuja alone has gone up in the recent years, giving rise
to huge competition in the industry. Since there are no barriers to entry, with limited investment
requirements many small salons have emerged catering to different market segments. We have two
main types of competitors in the market; the conventional beauty salon and then the ‘Independent’-
salon with first mover advantage in doorstep services in Abuja.
Point of Differentiation
We provide convenient and quality doorstep services to our customers. As in our case the customers
don’t have to go through that entire hassle of coming to the salons, waiting in long lines for their turns.
This saves a lot of time for working women and homemakers, who generally finds it difficult to leave
their family for long hours.
• Focused Services
We provide focused services in hairstyling and different makeup looks, as our competitors are providing
a range of services, including ‘Independent salon’- that is mainly providing doorstep services in personal
care only, so our positioning in the market differentiates us from our competitors.
• Makeup Looks
We conducted a range of surveys that depict that the customers are quite concerned about their final
outlook, generally all other salons don’t have their own makeover looks that increases the uncertainty in
the customers about the end look. So in order to decrease customer’s uncertainty we have our own
different makeup looks with our beauticians trained on them. This increases our credibility and
customer’s trust on our services.
Pricing Strategy
Beauty Touch is a premium brand, but we have priced our services slightly below the current premium
beauty brands available in the market. As customers are brand conscious and it takes time for a brand to
build its name in the market. Since, we have just started our business so initially we don’t want to
directly compete on prices with the well established names.
Market Analysis
Demographics
The basic target audiences demographically of Beauty Touch are women who:
• Live in Abuja
For the next 4 to 5 years Beauty Touch will operate in Abuja only. Abuja has a very large market. The size
of this segment in Abuja is around 440 thousand. Beauty Touch will focus on targeting women who are
currently not an active part of beauty and care industry due to difficulty of going out of home. The
second focus will be on converting parlour going women into a customer of Beauty Touch.
Psychographics
We have passionate, experienced and qualified group of diverse individuals in our management team.
We aim to emerge in an innovative and creative fashion; to deliver quality services and to generate high
levels of satisfaction in our customers.
I Mary has over three years’ experience in senior management position working on projects as team
lead. I completed multiple courses on beauty services from Derma Contour. Derma Contour Aesthetic
& Beauty Clinic. Plot 547, Mabushi District, VIO Area,, Abuja, Abuja.and is well versed in the beauty
industry. She possesses a master’s degree in business administration from a reputable university in
Nigeria . Associated with a media channel, she has a network of contacts suitable for this business.
Fatima Tauqir: Chief Marketing Officer and Chief Finance Office Fatima has an under-graduate degree in
finance from National University of Computer and Emerging Sciences – FAST Lahore and an MBA degree
in Management Sciences from Lahore University of Management Sciences. She has 3 years of
experience in digital and social media marketing. She is an entrepreneur at heart with deep
understanding of the beauty industry. She has worked for a reputed beauty salon, as social media
marketing associate for 1 year. Fatima is a hardworking individual with the right mix of passion, patience
and perseverance required in a startup.
She owns a master’s degree in business administration from a well renowned institute, with a
two years of experience in customers’ relations. She is closely associated with the beauty
industry for the past few years due to her fervent interest in the ever changing fashion trends, and
has also earned certain personal grooming certifications in the domain i.e. Depilex & Allenora.
She is quite passionate to come up with different innovative solutions to wow her customers, and
has the required spark, ambition and discipline to manage the business and its employees.
Overview
With a passionate team desirous of changing the beauty industry, this management team possesses
hands-on experiences in different business verticals. With expert knowledge in separate domains, we
can independently take care of our own verticals, along with that can still work together cohesively as a
team to overall improve the service quality and client satisfaction. All this makes the team a dynamic
and competent group of individuals, equipped with all the required skills needed for a successful
business venture.
Operations Plan
Our operations plan is mainly divided into two major groups namely, in-house activities that we are
taking care of internally and few activities are outsourced to third party for better management and
service delivery. In-house Activities
• Product Procurement
In order to ensure high product quality, procurement processes are handled internally. Some of the
details of our main vendors, along with the purchase ledger are given in Exhibit 2.
• Employee Training
We are internally spending time and efforts to train our beauticians on latest makeup looks and trends,
according to distinct face cuts and features. As customers are quite concerned about the final outcome
so this helps to reduce their uncertainty.
• Customers Appointments
We are mutually managing the customer’s appointments and beautician’s available time slots, in order
to avoid any delays and to ensure on time service delivery to the customers as promised.
• Beautician Recruitment
Experienced and professional beauticians are hired on board after a demo session to test their skills, to
avoid any compromise on service delivery.
• Marketing Activities
We are designing our own face book ads and flyers, though a third party is used for paid ad services.
Moreover, we are running a number of campaigns including referral programs, reward programs, Thank
you notes campaign to wow our customer’s experience with our brand.
Customer Care
We are closely in touch with our customers via different feedback forms to know about their
requirement and to further improve our services. This also helps us to build a long term relationship
with our clients.
Outsourced Activities
• Website Development
We have outsourced this domain to a third party for better management and quality services provision.
Website provides easy accessibility of our service details to our customers. It contains all the relevant
information related to our products, services and charges. Moreover, there are different beauty blogs
and tutorial sessions to educate our customer’s about the latest fashion trends.
• App Development
To provide convenience and ease to our customers we are also working on app development. That
contains all the relevant user friendly features and easy accessibility.
Key Resources:
Following are the details of the key resources needed for our business Model.
• Warehouse
We need a small office room space or warehouse to place our beauty care products so that beauticians
can easily collect the required products from there according to the appointment requirements.
• Beauticians
To deliver the door step services we need to hire experienced and qualified beauticians who are willing
to work on commission basis.
• Uber Transport
Operations Strategy
We will be providing services to some areas of Abuja and along with catering individual appointments
we will also focus on different events like weddings, birthday parties and farewell dinners, that way we
are able to cater multiple customers in a go and can generate better
revenues.
Marketing plan
Beauty Touch aims to create a demand for its services by executing the following marketing strategies to
attain the subsequent financial results.
To encourage customers to try the service, social capital will be tapped into, in addition to the services
of public relation agencies to gain clients.
• Loyalty Programs
Personal appearance industry is characterized by a large proportion of revenues coming from repeat
business, therefore customer retention is important. For any mobile beauty platform to be successful,
the quality of services has to be top notch to ensure that the customer acquisition costs are minimal
with majority of requests coming from satisfied customers. A loyalty program will enable clients to feel
rewarded and continue to give incentives to continue with Beauty Touch.
Women are more likely to try out a personal service like facials if another friend of their recommends it.
That's the idea behind a "Refer a Friend" promotion where a client and the referred friend get a 20
percent off their next service. Tying these promotions with full-priced sales will ensure customers get a
bonus, but Beauty Touch profits remain stable.
• Raising Customer Awareness via SMS Marketing
With a database of SMS numbers of existing beauty clinics, targeted messages will be sent to these
women with deals and promotions to entice them to try different deals out. These messages will focus
on generating awareness about the service, then creating interest by offering special limited time deals,
and then used to engage with clients. This engagement will include soliciting customer feedback and
offering beauty tips and related content.
A cost effective medium to reach out to a large population is social media. With a Facebook page and a
website, this medium will be effectively used by creating relevant campaigns for different customer
segments focused on generating leads and encouraging repeat behavior. The experience will be sold
with an engaging visual campaign that depicts the customer Value proposition to clients.
Financial Plan
The revenues of Beauty Touch will come from receipts collected from clients. These revenues are 100%
cash based as Beauty Touch isn’t operating on credit basis. Moreover, the main sources of variable
expenses include the commission paid to the makeup artist and the transportation cost of commuting to
the client’s location of choice.
Beauty Touch has a lean commission based model. 50% of the revenue collected from the clients will go
to the makeup artist. The makeup artist will use an Uber Transport to reach the client’s location of
choice.
In addition to that, other expenses will include the cost of inventory and marketing expense, majorly.
Inventory details include:
• Makeup products
Profit and Loss account has been forecasted on the basis of few assumptions. The first assumption is
that the revenues will grow at 10% per year. This assumption is based on in-depth market and situation
analysis. The factors that will contribute towards the growth rate include:
Nearly all of Beauty Touch’s transactions are cash based. The revenues are collected on spot and the
commissions are paid out on spot. Moreover transport expenses are also cash based. Therefore, the
cash flows are very similar to the profit earned. Exhibit 9 shows the projected cash flow statement for
the years 2018 to 2021. The liquidity position is expected to be in good shape. Beauty Touch will have a
payout ratio of about 80%. Rest of the money will be either reinvested in the business or kept as short-
term investments to earn a return.
Beauty Touch currently needs an investment of N200,000 for marketing and future makeup products
and equipment. Against this amount the investor will get a stake of 35% in the business. The break-even
point to cover this investment amount is about 50 clients only. This amount can be recovered in 2
months only. The return on investment for Beauty Touch is going to be 68% in the few month of
operation. A summary of financial variables is shown in Exhibit 10.
Business Risks
The parlour going customers may not be very keen to adopt the idea of an at-home beauty service.
Risk Mitigation Strategy: The services have been priced lower than the premium parlors and a variety of
different looks are being offered through a catalogue so that the client can choose their favorite look.
Beauty parlours normally have a few looks which they use on all clients. Moreover, we have a referral
reward program to encourage word-of-mouth marketing.
Competitors with similar business model might enter if at-home beauty service model is adopted by
many people. The entry barriers are low, therefore, it will not be difficult for low-priced competitors to
enter the market.
Risk Mitigation Strategy: In order to lower the threat of new entrants Beauty Touch will start loyalty
program. Under the loyalty program discounts and special deals will be provided to repeat customers.
Employee retention is an inherent problem within the beauty industry. The beauticians switch jobs for
even a slightly higher pay. Moreover, they also might try to directly contact the clients once their
credibility is established.
Risk Mitigation Strategy: Beauty Touch will sign minimum 2-year job contracts with the makeup artists,
before their training process begins.
Risk Mitigation Strategy: Beauty Touch will expand in other cities of Nigeria. There is a large urban
population with around 50% women. Out of the urban female population about 3.3 million women fall
within the target market segment of Beauty Touch..