__________________________________
Client: MPAcc Investors
University of Saskatchewan
Edwards School of Business
_________________________________
Empack Consulting Co.
Elysse de la Paz
Courtney Eng
Samantha Ma
Sherry Wang
Pure Nail Bar Business Plan (Client: MPAcc Investors)
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Contents
1.0 EXECUTIVE SUMMARY ........................................................................................................................... 1
3.0 MARKETING PLAN ................................................................................................................................. 3
3.1 Industry Background .................................................................................................................... 3
3.2 Porter’s Five Forces ..................................................................................................................... 4
3.3 Product, Price, Place .................................................................................................................... 5
3.4 Competitive Advantage ............................................................................................................... 8
3.5 Promotion ........................................................................................................................................ 9
3.6 Marketing Expense ..................................................................................................................... 11
4.0 OPERATIONS PLAN .............................................................................................................................. 11
4.1 Legal Structure............................................................................................................................. 11
4.2 Retail Location and Floor Plan ................................................................................................ 11
4.3 Capital Budget.............................................................................................................................. 12
4.4 Operating Expenses ................................................................................................................... 13
4.5 Daily Operations – Client Experience .................................................................................... 13
5.0 HUMAN RESOURCES PLAN ................................................................................................................. 14
5.1 Job Descriptions ......................................................................................................................... 15
5.2 Training Programs ...................................................................................................................... 17
5.3 Human Resources Strategy ...................................................................................................... 17
5.4 Labour Costs ................................................................................................................................ 18
6.0 FINANCIAL PLAN .................................................................................................................................. 18
6.1 Projected Financial Statements............................................................................................... 18
6.2 Financing Budget ........................................................................................................................ 19
6.3 Dividend Policy ............................................................................................................................ 19
6.4 Management Information System ........................................................................................... 20
6.5 Investment Analysis ................................................................................................................... 20
6.6 Risk Mitigation ............................................................................................................................. 21
7.0 OVERALL SUMMARY............................................................................................................................ 22
REFERENCES .............................................................................................................................................. 23
APPENDIX I - SWOT ANALYSIS ............................................................................................................. 25
APPENDIX II - PESTE ANALYSIS OF THE BEAUTY SALON INDUSTRY................................................. 27
Pure Nail Bar Business Plan (Client: MPAcc Investors)
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APPENDIX III – PLACE: LOCATION OF NEW PURE NAIL BAR .............................................................. 28
APPENDIX IV – PROMOTION: GENERATING A UNIQUE ENVIRONMENT ............................................... 29
APPENDIX V – LABOUR REQUIREMENTS .............................................................................................. 30
APPENDIX VI – POSITIONING MAP ......................................................................................................... 31
APPENDIX VII – ORGANIZATIONAL STRUCTURE ................................................................................... 32
APPENDIX VIII – LAYOUT ....................................................................................................................... 33
APPENDIX IX - CAPITAL BUDGET .......................................................................................................... 35
APPENDIX X – PROCESS FLOW: CLIENT EXPERIENCE ........................................................................ 37
APPENDIX XI – SAMPLE ART ................................................................................................................. 38
Pure Nail Bar Business Plan (Client: MPAcc Investors)
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1.0 EXECUTIVE SUMMARY
Pure Nail Bar is a new, trendy, and unique company that will bring a twist to the concept of
professional nail care services. True to its name, the company focuses on delivering quality nail
care and providing pure cleanliness for hands and feet as a form of health and happiness. All
these services are provided at reasonable prices; however, the key differentiating aspect of
Pure Nail Bar is its focus on the client experience and the ambiance of the client’s surroundings.
Pure Nail Bar will be the ideal location for women to gather and socialize, while receiving the
care and attention they desire for their nails. In concert with the company’s trendy and
fashionable image, Pure Nail Bar will open in the Kitsilano neighbourhood in Vancouver, and
serve the City of Vancouver.
The three key success factors for relevant to Pure Nail Bar include:

Providing a fun, trendy, and social environment for individuals to receive beauty
services;

Having friendly and knowledgeable staff deliver quality and personal beauty services
that shape the ultimate “Pure” customer experience; and

Providing fashion-conscious and quality services at reasonable prices.
Accordingly, one of the major aspects of the social and vibrant environment at Pure Nail Bar will
be the employees. As they are the main points of contact for customers at Pure Nail Bar, the
company will seek individuals who are friendly, fashionable, and adequately trained.
Additionally, the firm will provide annual professional development courses to inform the staff of
new and upcoming trends, as well as address any areas for improvement. Taken together, this
will ensure that Pure Nail Bar reaches all of the critical success factors noted above.
To market the company, Pure Nail Bar will place advertisements in well-known Canadian
fashion magazines such as Lou Lou and Fashion; however, the main channels of advertising
will be through Facebook, fashion blogs, and Twitter. These sources of communication are
highly effective and inexpensive technological forms of “word-of-mouth” advertising that will aid
Pure Nail Bar in reaching its target market.
Investors of Pure Nail Bar can expect an average return on equity of 19%, and a pay-back
period of approximately 5 years.
Pure Nail Bar Business Plan (Client: MPAcc Investors)
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2.0 INTRODUCTION TO PURE NAIL BAR
Pure Nail Bar is an innovative company that focuses on providing nail care services. The
company focuses on pure cleanliness for hands and feet as a step towards health and
happiness. This nail bar not only offers manicures and pedicures, but also waxing and
massages. Pure Nail Bar is looking to open in a location in lower mainland British Columbia.
To achieve success in the beauty industry, Pure Nail Bar concentrates on providing services in
a comfortable and relaxing atmosphere at competitive prices. However, the main differentiating
point for Pure Nail Bar is the environment in which the services are provided. The chic and
stylish décor combined with the knowledgeable and friendly staff makes Pure Nail Bar the place
to be to receive routine nail care, and to catch up with friends. The company aims to attain high
popularity among its target market, as will be discussed in the following business plan, by
offering an experience rather than just a service. Its target market includes women from 16 to 40
years old who are interested in a relaxing and enjoyable beauty experience.
Pure Nail Bar’s Mission Statement is:

Pure Nail Bar aims to provide a uniquely fun, fashion-forward experience for “Pure
Customers” to be pampered with quality “Pure Beauty Services” at reasonable prices in
a trendy and unique social atmosphere.
Pure Nail Bar’s critical success factors:

Providing a fun, trendy, and social environment for individuals to receive beauty
services;

Having friendly and knowledgeable staff deliver quality and personal beauty services
that shape the ultimate “Pure” customer experience; and

Providing fashion-conscious and quality services at reasonable prices.
The following business plan will discuss our intention to open a new store location in Kitsilano
(West 4th Avenue) and describe how pursuing this venture will be both profitable and successful.
Pure Nail Bar understands that opening a new location will require a heavy emphasis on
marketing to further expand the brand’s reach and to spark interest in a new pool of potential
customers. The anticipated opening date of the new location will be March 2011.
As Pure Nail Bar is being started by four individuals, each individual will invest $10,000; for a
total of $40,000. An $80,000 long-term loan will be obtained from the bank, which will be
Pure Nail Bar Business Plan (Client: MPAcc Investors)
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payable over five years at an interest rate of 4.3%. Another $80,000 will be required in order to
finance the operations of this business.
3.0 MARKETING PLAN
3.1 Industry Background
The beauty industry is one filled with many different types of services. For the purposes of this
business plan, the industry analysis will focus on Canadian salons that provide manicures and
pedicures as these are the main services provided by Pure Nail Bar. Please see Appendix I for
a SWOT analysis, which looks at the opportunities and threats in the industry, as well as
Appendix II, which provides an analysis of the political, economic, socio-cultural, technological,
and environmental characteristics affecting the industry.
The main regulations that impact the beauty industry are health and safety rules for running a
salon, specifically in regards to sanitization procedures. Overall, there are few political
limitations for manicure/pedicure service providers. From an economic perspective, the beauty
sector was one of the least affected industries during the recession. While the personal care
area experienced a decline in performance during this time, the effects were nowhere near as
drastic as in other industries (Beacham, 2010). This shows that the beauty industry is relatively
resilient to market changes, and this offers great opportunities as consumers will consistently
desire quality beauty services and products. Conversely, the fact that the recession caused
even a small decline in the industry’s performance also shows that industry players will need to
differentiate themselves from their competitors in order to garner and maintain a loyal customer
base.
When looking at the socio-cultural factors affecting this industry, the primary demographic
interested in the services provided are women aged 16-40. This age range includes a large
group of career-driven business women who work hard and are interested in finding ways to
relax (Leighton, 2009). Most women in this age group fit comfortably into the Generation Y
category, which includes those born between the mid-1970s and 1990s. Generation Y women
perceive themselves as trendsetters who are interested in popular culture, and especially in
what is new and fresh at a particular time (Global Cosmetic Industry, 2010).
Pure Nail Bar Business Plan (Client: MPAcc Investors)
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There are not many relevant technological advances that will vastly improve the salon
experience. However, companies in the beauty industry can take advantage of modern day
advertising techniques and electronic forecasting tools to help with administrative tasks such as
planning and scheduling. Environmentally, there are limited factors that impact companies in
this industry. Salons that provide manicure/pedicure services do not produce an excessive
amount of environmental waste.
3.2 Porter’s Five Forces
Given the above discussion, this section will take the analysis one step further and conduct a
brief Porter’s Five Forces analysis to further map out the industry.
Supplier Power – (LOW) Companies offering services in this industry will have suppliers that
provide beauty products (ex. nail polish, nail files, etc.). There is not a great amount of supplier
power as most of the products acquired by salons can be purchased from any regular
department store supplier. Thus, because the goods are widely available, supplier bargaining
power is low.
Buyer Power – (HIGH) Buyers have high bargaining power in this industry as there are a vast
number of players that provide similar services. Thus, buyers can be selective and are very
conscious of those companies that offer either lower prices or differentiated services.
Furthermore, there are economical substitutes available – for instance, consumers can just as
easily purchase a home manicure/pedicure at a lower cost. Thus, buyer bargaining power is
high.
Barriers to Entry – (MODERATE) Due to the fact that there are many players currently in the
industry offering similar services, there are several barriers to entry. Additionally, costs of capital
can be significant as an office must be acquired at which to house the salon. However, a
differentiated company would have an easier time entering the industry if they were able t o
offer customers something truly unique at a reasonable cost. Thus, the barriers to entry are
moderate.
Threat of Substitutes – (HIGH) There are many available substitutes available for people who
are looking for beauty services. Not only are home manicure/pedicures easy to accomplish, but
consumers may also choose to spend their money on fancy spa-days, masseuses, or some
Pure Nail Bar Business Plan (Client: MPAcc Investors)
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other form of relaxation. Thus, the threat of substitutes for undifferentiated players in this
industry is high.
Rivalry – (HIGH) Switching costs for customers of beauty service providers are low. As
mentioned previously, there are many players in the industry offering similar services.
Furthermore, because buyers have high bargaining power and there are many available
substitutes, it is difficult for players in this industry to succeed. Accordingly, these factors mean
that there is a high overall risk for companies in this industry that do not have appropriate cost
or differentiation strategies.
3.3 Product, Price, Place
Now that an understanding of the beauty industry has been established, the focus will be placed
on the planned new Pure Nail Bar location. The following discussion examines the four P’s of
marketing as they apply to Pure Nail Bar.
Product
Pure Nail Bar will offer a variety of services which can be divided into six main streams:

Pure hands – Services offered in this stream include different types of manicures
including French manicures, cuticle clearing, filing, exfoliation, etc.

Pure nails – This consists of services that are used to maintain nails. For instance,
offerings include UV nail gel and nail-fixing services.

Pure feet – Services offered in this stream are similar to those offered in Pure Hands,
but apply to pedicures.

Pure extra – Services included in this stream consist of pure paraffin wax treatments,
nail art and polish changes.

Pure wax – Waxing including bikini waxes, arms, legs, chest, back etc.

Pure relax – Services offered in this stream are massages.
One of the key differentiating factors of Pure Nail Bar in terms of its products is the fact that it
offers a variety of services not only for its key demographic group, but for other individuals as
well. Some of these special offerings include:

Pure Princes Pedi – A pedicure for little girls under 12 years old.

Pure Metroman-i – A manicure for men
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Overall, Pure Nail Bar offers a variety of services to its customers to meet the needs of
individuals looking for a quick beauty fix or customers looking for a longer relaxing experience.
These services are performed by nail technicians and estheticians.
Price
Pure Nail Bar’s price strategy is to provide excellent service and a unique experience for
customers at a reasonable price that is competitive with the market. While the prices offered are
not the lowest in the industry, Pure Nail Bar can comfortably fit into the category of “discount nail
salons” that do not provide the luxury treatments offered by spas, but instead provide quality for
a reasonable price. The following summarizes the price ranges for services that are provided at
Pure Nail Bar:
Service Description
Manicures
Pedicures
Waxing
Massages
Parafin Wax
Nail Art (per nail)
Polish Changes
Services for Girls Under 12
Services for Men
UV Gel
Nail Fixes
Lowest Priced
Offering
$25
$35
$10
$10
$15
N/A
$15
$15
N/A
$40
$10
Highest Priced
Offering
$70
$50
$40
$40
$20
N/A
$25
$25
N/A
$60
$16
Average Price
$48
$43
$25
$25
$18
$5
$20
$20
$25
$50
$13
These prices are very affordable for the average Vancouver woman in the target demographic.
In British Columbia, according to Statistics Canada, the median salary is upwards of $65,000
(Statistics Canada, 2009).
Place
The proposed location for the new store is at 4th Avenue West in Kitsilano, Vancouver, British
Columbia. Please see Appendix III for a map of the proposed location.
This particular location has a number of important attributes that will help increase the
probability of success of the new Pure Nail Bar as summarized below:
Pure Nail Bar Business Plan (Client: MPAcc Investors)
Location Factors
Relative Geographic
Location
Population
Neighbourhood &
Surrounding
Businesses
Details
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Neighbourhood
Competitors
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
20 minutes from the University of British Columbia
10 minutes from downtown
5 minutes from Granville Island & Vanier Park/Planetarium
2 minutes to Kitsilano Beach
51% of the 25,000 people population in Kitsilano are women
Approximately 70% of the population is between the ages of 20 and
44
Average income levels are over $65,000
Young, affluent adults that value a balanced lifestyle
Small families with young or no children
Surrounding side streets are residential with apartment buildings
Complementary businesses such as restaurants (west coast
cuisine, international food options), snack shops (bakeries, frozen
yogurt shops, organic/health food stores, cafés, chocolate shops),
shopping (athletic wear, mid to high range clothing for women and
unisex, independent shops, hair salons)
All surrounding businesses cater to a feeling of wellness and
comfort for the middle to upper class. All stores and shops are made
to feel trendy and fresh.
There is a beauty bar across the street from the proposed location
for Pure Nail Bar, which is more of a complementary service as it
sells products (lotions, makeup, etc.) but does not provide nail care
services.
Spas (Kitsilano Spa & Solarice Spa)
 Heavy traffic during rush hour and on the weekends when people
visit the shops/restaurants/salons
 10 am – 7 pm hours of operation is the norm for most businesses
 Spring & Summer are the best months for business as the wedding
season and beach season fall within these months
Cost
 $38/sqft (TRG Realty, 2010)
Source of Kitsilano Neighbourhood Facts: (BizMap, 2009)
Traffic
As shown above, this location has a number of key characteristics that fit well with Pure Nail
Bar’s targeted demographic of women between the ages of 16 and 40 who are looking for
trendy places to receive beauty treatments and to relax. Based on the information above, it is
important to note that there are almost (51%*25,000*70%) 9,000 people in our target market
group who live in Kitsilano. Using this as the base of our estimate, our goal is to create a
company that can meet the demand of approximately 30% the size of this group (approximately
2,500 people). This is because we understand that customers who frequent this location will not
only be coming from Kitsilano, but also from other locations in Vancouver, especially once the
popularity of Pure Nail Bar is established.
Pure Nail Bar Business Plan (Client: MPAcc Investors)
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In terms of distribution, because Pure Nail Bar is a service-oriented company, there will only be
direct selling of services to customers. The focus is on providing quality service and a unique
experience as opposed to selling a product.
3.4 Competitive Advantage
It is important to first identify what type of marketing strategy is most appropriate for Pure Nail
Bar based on the competitive advantage of the company. A cost leadership strategy will not be
sustainable in this industry as new entrants do not have the same economies of scale as
established businesses in this industry. However, there is great potential for a differentiation
strategy to be successful and sustainable for Pure Nail Bar. As the idea of providing nail care
services is neither new nor innovative, Pure Nail Bar will succeed in the market by using a
differentiation strategy that innovates in the following areas:

Providing a trendy, hip environment for customers to receive beauty services. This is
reflected in the name of the store – Pure Nail Bar – which gives the feeling that it is more
of a place to socialize with friends and relax as opposed to a quick “in and out” salon.

Keeping current on the latest fashion trends and offering these to customers. As
Kitsilano plays host to a set of trendier individuals, they will be looking to frequent
businesses that allow them to feel as though they are staying up to date with popular
culture and current fashion styles.

Emphasizing the value of a great experience alongside great service. From the moment
customers walk into a Pure Nail Bar location, it is as if they enter another world where
the atmosphere is calm and relaxed.
The above factors are all keys to ensuring that Pure Nail Bar operates as a differentiated nail
salon with a unique experience for its clients. See Appendix VI for a market positioning map
that displays where Pure Nail Bar intends to compete in terms of price and quality. As the
positioning map reveals, Pure Nail Bar does not significantly differentiate itself from other
competitors by price; rather, it is the combination of both the price position and the quality
offered at that price (ie. the experience) that sets the company apart. The focus is on creating a
Pure Nail Brand that is recognizable and desirable by the target demographic. The following
discussion of promotion will expand on how brand strength can be developed and maintained.
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3.5 Promotion
A successful promotion plan for Pure Nail Bar will need to emphasize the differentiation factors
of its marketing strategy. The focus is on creating a brand image that entices consumers to
undergo the Pure Nail Bar experience so they can satisfy their desires for a relaxing and trendy
space to receive beauty treatments.
Generating a Unique Environment
To generate a stylish, hip, and relaxing environment Pure Nail Bar will:

Use furniture that is modern and chic to give the feeling of a fashionable location for
relaxing and socializing. See Appendix IV for an example of what the interior will look
like. The furniture will always have a bright color theme to generate feelings of
happiness, purity, relaxation, and cleanliness. Customers can lounge on the sleek white
couches in the Pedicure Lounge, or socialize with friends while getting manicures at the
Manicure Bar.

Provide all customers with complimentary green tea as they wait or as they receive their
services. This contributes to the feeling of relaxation and pampering that the salon
emphasizes. It serves to balance the laid-back atmosphere with West Coast
sophistication.

Emphasize the company’s grasp of popular culture and its ability to stay current on all
trends. Pure Nail Bar will offer the latest fashion styles from nail polish colors to the
newest nail treatments. Furthermore, there will be televisions in the salon playing movies
like Sex and the City, which emphasizes fashion and youthful trends.
Advertising Channels
Pure Nail Bar can attract a lot of press attention when its first location is opened because it
offers such a unique twist to the normally mundane task of maintaining one’s nails. The first step
in successful advertising for Pure Nail Bar would be to generate buzz among potential
customers and to capitalize on this popularity. To build brand recognition, Pure Nail Bar needs
to be seen in media outlets that are constantly viewed by the target demographic. Some of the
advertising channels that Pure Nail Bar will use include:

Female-oriented fashion magazines – Canadian magazines such as Lou Lou, Lucky,
and Fashion are excellent examples of magazines that are widely read by 16 to 40 year
old women in Pure Nail Bar’s target market. These magazines are read by women who
are interested in the latest fashion and beauty styles.
Pure Nail Bar Business Plan (Client: MPAcc Investors)
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10
Facebook & Twitter – To maintain a brand image of being up-to-date and fashionable,
Pure Nail Bar needs to be aware of all trends, including those related to technological
methods of networking. Facebook and Twitter are two very popular web-based methods
of communication with a wide user base. Not only do these two channels make it easy to
get in touch with current and potential customers, but Pure Nail Bar will also be able to
post instantaneous updates to show its key demographic that it is current with the latest
fashions.

Company website – Pure Nail Bar will create and maintain its own company website to
provide information for potential and existing customers regarding the company’s hours
of operations, service offerings, price lists, and in-store promotions. Customers can also
sign up for monthly newsletters, make a reservation to book parties, and purchase gift
certificates online.

Word-of-Mouth – Personal referrals are another important part of the promotion strategy
of Pure Nail Bar. Because Generation Y individuals perceive themselves as trendsetters,
they will always be looking to spread the word to their friends whenever they find a
particularly stylish and chic new place. Fashion and lifestyle blogs, in particular, have
become popular channels of referring individuals to popular businesses and fashionable
hot spots. Thus, Pure Nail Bar will indirectly encourage its customers to provide referrals
by providing a great service and emphasizing the trendiness of the salon so that these
individuals will feel compelled to share the unique and “Pure” experience with their
friends.
Hosting Events
Pure Nail Bar will offer “Pure Parties”, which are opportunities for customers to book parties at a
Pure Nail Bar location. This is yet another differentiating factor of the company as most nail
salons do not host parties. Events such as bachelorette parties, birthdays, baby showers and
corporate events can be held at Pure Nail Bar.
These events will allow Pure Nail Bar’s target demographic to enjoy a fun, relaxing event with a
group of their closest girlfriends while they get pampered. An additional method of promotion
would be to offer special party deals throughout the year to encourage women to try out Pure
Nail Bar’s services and experience the facility’s unique environment. Hosting events contributes
to building Pure Nail Bar’s brand image as an ideal location to both look and feel great.
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3.6 Marketing Expense
Marketing expense will include costs for advertising and promotional events/deals. Advertising
rates for publication in Canadian fashion magazines, such as Lou Lou, range from $9,100 to
$16,500 for up to three issues in a year. Assuming that Pure Nail Bar will advertise in at least
two major magazines, Lou Lou and Fashion, for three issues per year for half page spreads, the
average cost for each magazine is $11,595, totalling $23,190 per year (refer to Schedule C –
Operating Budget). All other forms of advertising (ie. Facebook and Twitter) have minimal to
no costs.
4.0 OPERATIONS PLAN
4.1 Legal Structure
Pure Nail Bar will be incorporated as a small business corporation in British Columbia under the
British Columbia Corporations Act. The legal structure limits the liabilities and losses the owners
of the Pure Nail Bar would experience should the company perform poorly. Pure Nail Bar will be
classified as a Canadian Controlled Private Corporation and will be eligible for the Small
Business Deduction, which provides the company with lower corporate tax rates. Based on the
financial projections in Exhibit 1 – Base Case, the company will have losses in the first two
years of operations, which will be used by year five to reduce the taxes payable in subsequent
years of profit. Ultimately, this structure has very favourable tax implications and sufficient legal
protection for the company’s owners.
The management structure of the company will have three levels of employees: Manager,
Assistant Manager, and line employees. Line employees consist of nail technicians,
estheticians, and the receptionists. Please see the Human Resources Plan for further details.
4.2 Retail Location and Floor Plan
The location for the nail bar is a crucial component of the marketing plan. The factors
associated with the Kitsilano location are ideal for the premiere location of the nail bar. Equally
important to the nail bar’s physical location is the layout and space inside the nail bar. The floor
plan is detailed in Appendix VIII and has several key design highlights that consistently flow
with the brand image of the company:
Pure Nail Bar Business Plan (Client: MPAcc Investors)
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12
Entrance - the receptionist desk, appointment book, and Point of Sales (POS) machines
are all located at the front desk. The receptionist is stationed at this location to greet
clients and bring them in for treatment.

Treatment area - the first treatment area, mainly focused on pedicure treatments is
made up of sofas and chairs where clients can receive treatments in smalls groups or as
individuals. This is a very casual and communal treatment style designed for socializing
and bonding. The walls in the main treatment area will be decorated with pop-culture,
animated art that will be consistent with the brand image of the company. Please see
Appendix XI for an example.

Iconic Nail Bar – the white nail bar is the primary treatment area for the manicures and
other hand treatments. This nail bar is an updated interpretation of the sterile nail salons
that clients may typically be use to. The nail bar is a statement fixture in the facility.

Private Treatment Rooms: The waxing treatment rooms are located in a separate area
from the nail treatments in order to provide additional privacy due to the nature of the
treatment provided. Two treatment rooms will be sufficient for the premiere location as
the nail treatments will be the primary source of activity.

Storage room – a storage room for additional supplies and a space to clean reusable
tools will be located in the backroom out of sight from the clients. It is important that
these supplies are tucked away from the client sight so that the ambience of the nail bar
is consistent.

Staff Lounge – The staff lounge will be located in the same area as the storage area.
This area will be used for employees to eat meals, take breaks, and deal with
administrative tasks.
4.3 Capital Budget
As Pure Nail Bar is a service-oriented business, its capital expenditures will not be too intensive
since its main expenses will be for the salaries of its managers, nail technicians, and
estheticians. The major capital expenditures will be the costs of manicure & pedicure
equipment, waxing equipment, computer hardware & software, and store furniture & decor.
Refer to Appendix IX for a detailed description of the capital expenditures required. As per the
Capital Budget Summary in Schedule F, the total amount of capital expenditures will be
$42,470.
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4.4 Operating Expenses
A five-year projection of the annual operating expenditures has been outlined in Schedule C.
During the first year of operations, operating costs have been estimated at $581,060, the major
expenses consist of the following costs:

Salaries & Benefits: The salaries and benefits expense of $492,060 represents 85% of
total expenses, and is the largest expense that Pure Nail Bar will incur. Refer to section
5.4 Labour Costs for a detailed explanation of the breakdown for this expense.

Facility Lease: Annual lease payments for 1,050 square feet of retail space are $38 per
square feet in the Kitsilano region. Pure Nail Bar will enter into a 5 year lease
agreement, and will pay $39,900 annually.

Supplies & Office Expenses: Supply costs are expenses incurred for nail polish, waxes,
wax strips, nail files, tweezers, etc. We have estimated these costs to be approximately
$7,000 annually. General office and miscellaneous expenses include costs associated
with stationary, replacing office supplies, and other small operational expenses. We
have estimated these costs to be approximately $1,000.

Website Maintenance: Website maintenance provided by a small company or a
freelancer averages between $1,000 to $2,500. We have assumed a mid-range cost of
$1,750 for each maintenance service, and we also assumed that we would update the
Pure Nail Bar website twice a year.
4.5 Daily Operations – Client Experience
Pure Nail Bar will be open 10am to 7pm, 7 days a week. The hours take into consideration that
a lot of the walk-in traffic will coincide with lunch time meals and shopping hours; therefore, the
hours are designed to fit in the pre-lunch crowd, afternoon shopping, and post-work relaxation
time. The holiday closures will be limited to Christmas Eve, Christmas Day, New Years Day,
and Easter to maximize availability to clients who want to enjoy their days off with relaxing
treatments. It is expected that sales will be steady throughout the year as customers will book
waxing treatments and maintain their nails continuously during the year. However, there will be
a slight increase in sales during May to September as the wedding season and beach season
take place during these months. Nail technicians and estheticians will have the majority of their
working hours concentrated in the afternoon. The appointment requests will dictate the number
of employees available during shifts.
Pure Nail Bar Business Plan (Client: MPAcc Investors)
14
The following outline details the customer experience from start to finish:
1. Clients are invited to make appointments via telephone up to the day of the requested
treatment. Volume is expected to be generated as follows: 60% from scheduled
appointments and 40% from walk-ins. Since the majority of the treatments are
considered relaxation and pampering treatments, we expect that planned appointment
times are going to be most efficient for the target clientele.
2. When clients arrive, they will receive a friendly greeting from the receptionist. The
receptionist will sign in the client or slot them in for the next available time slot based on
the requested treatment.
3. The client will then be shown to the waiting area or to their treatment location: treatment
room, main treatment area (sofas), or the nail bar
4. The receptionist will then notify the esthetician or nail technician, who will begin
preparations for the client
5. Each treatment will proceed according to the treatment description.
6. While the client enjoys a beauty treatment, various forms of entertainment are available
from magazines, to socializing with the estheticians and nail technicians, to watching
Sex and the City on the flat screens.
7. After the treatment is completed, the client will proceed to the receptionist to make their
payment.
8. The receptionist processes the payment, collects any applicable tips, and enquires with
the client about the quality of their experience. Each client is invited to complete a survey
card to provide feedback on their experience and also to enter in a draw. The client will
also have the option of providing contact information for promotional emails and
specials.
Please refer to Appendix X for a diagram of the Customer Experience.
5.0 HUMAN RESOURCES PLAN
With an understanding of Pure Nail Bar’s marketing and operations plans, the next step is to
take a look at the human resources plan and how it will be successful.
Pure Nail Bar Business Plan (Client: MPAcc Investors)
15
5.1 Job Descriptions
Pure Nail Bar will have a relatively simple organizational structure (See Appendix VII)
consisting of store managers, assistant managers, estheticians, nail technicians, and
receptionists.
Store Manager

Responsible for day-to-day operations of the Pure Nail Bar location.

Manage a team of 5-8 other individuals by performing activities such as:
o
Weekly scheduling of staff
o
Basic accounting
o
Managing inventory and ensuring the quality of services being provided to
customers are meeting Pure Nail Bar standards
o
Recruiting, interviewing, hiring, and terminating of employees. The manager will
also be responsible for coordinating the mandatory training programs for all staff.
o
Creating action plans to build Pure Nail Bar’s positive brand image and to
implement the marketing plan.

The manager must have a thorough knowledge of the fashion industry and be educated
about the latest fashion and popular culture trends. The ideal manager would have at
least 3 years management experience and a commerce certificate or degree to show
that he/she can handle all aspects of the operations including accounting. Furthermore,
the ideal store manager would also have extensive experience (5+ years) in customer
service situations because of Pure Nail Bar’s large emphasis on providing a valuable
experience to its customers.
Assistant Manager

The assistant manager is responsible for providing guidance on the shop floor to
improve daily operations.

While the manager is responsible for administrative duties, the assistant manager will be
responsible for resolving disputes with customers and dealing with customers on a
regular basis. The assistant manager will report to the store manager and will
communicate any issues noted during operations.

Assistant managers must be thoroughly familiar with all services offered by Pure Nail
Bar and also have a detailed knowledge of the beauty industry with respect to nail care
and maintenance.
Pure Nail Bar Business Plan (Client: MPAcc Investors)

16
The assistant manager must have the ability to act quickly on his/her feet to deal with the
daily problems that arise during regular operations.

Assistant managers are also responsible for reviewing the schedule of customer
appointments to ensure that there are no issues with scheduling.

Assistant managers are also responsible for creating a positive environment for the other
employees and encouraging them to be friendly to customers.

The ideal assistant manager would have a high school diploma and a passion for the
beauty industry, especially nail care. Furthermore, the ideal candidate would have at
least 3 years experience in the retail industry and be able to demonstrate an ability to
lead and supervise.
Nail Technicians & Estheticians

Nail technicians & estheticians are front-line workers who will provide manicure,
pedicure, waxing, and massage services to the clientele. They must be able to provide
these services with a high degree of quality and at a reasonable speed.

Nail technicians & estheticians will be expected to provide customers with a positive
experience by being friendly and hospitable.

Nail technicians & estheticians report to the assistant manager on duty.

Nail technicians & estheticians must be able to work in a team environment alongside
other nail technicians & estheticians as two to four nail technicians & estheticians will be
working on the floor at the same time.

They must have a thorough understanding and knowledge of all services provided and
must also know how to answer customer questions regarding nail care. This is
particularly important because nail technicians & estheticians must have adequate
knowledge to provide sound advice to customers if required.

Candidates must be certified/licensed nail technicians and estheticians with at least one
year experience. They should be able to demonstrate their knowledge with current
fashion trends and popular culture.
Receptionist/Administrative Assistant

Responsible for answering the phone and booking appointments for customers who call
in ahead of their arrival.

Also responsible for scheduling in walk-in customers and consulting with the assistant
manager in the case that there are schedule conflicts.
Pure Nail Bar Business Plan (Client: MPAcc Investors)

17
The receptionist/administrative assistant will report directly to the assistant manager who
will review the booked customer schedules to best allocate available company
resources.

As the first face that customers see upon walking into Pure Nail Bar, the
receptionist/administrative assistant must demonstrate a friendly and welcoming attitude
and the ability to multi-task.

Cash register duties.

Candidates must have at least three to five years experience in an administrative or
receptionist position. They must also show that they have a thorough understanding of
the beauty industry and a passion for fashion and trends.
5.2 Training Programs
When new employees begin working for Pure Nail Bar, they will be enrolled in an orientation
program which serves to educate them on the critical factors of Pure Nail Bar’s business
strategy. They will be encouraged to understand Pure Nail Bar’s commitment to being a trendy
beauty service provider by emphasizing the value of the customer experience. The orientation
session will be conducted in a fun, welcoming, and less than formal manner which is in
accordance with Pure Nail Bar’s commitment to its laid-back attitude. The session and
orientation materials will cost $200 per employee, but is a one-time expense for each new
employee.
Nail technicians & estheticians will be required to go through an annual training program to
review their techniques and ensure that they are providing quality service to customers. This
training session will be 2 days long and will also focus on providing teambuilding activities so
that the technicians & estheticians are comfortable with each other, which adds to the positive
environment encouraged by Pure Nail Bar. These training sessions will cost approximately $150
per employee.
5.3 Human Resources Strategy
For Pure Nail Bar to have a successful human resources strategy, the emphasis is placed on
making sure employees live up to the brand image of Pure Nail Bar – that of being trendy,
fashion knowledgeable, and relaxation-focused. To achieve this, the manager or assistant
manager will host a meeting with the staff (at which all full-time employees will be expected to
be in attendance) in order to update them on any new fashion trends or new fashion/style
Pure Nail Bar Business Plan (Client: MPAcc Investors)
18
offerings that Pure Nail Bar will be offering. This is also a time for the staff to speak up about
any issues they have noted and this will also be a time to motivate everyone and get them
excited about the week. The general work environment will be a relaxed one where staff can
feel free to gossip with their customers and enjoy their jobs.
5.4 Labour Costs
Pure Nail Bar will be open 7 days a week from 10 am – 7 pm. Please see Appendix V for a
summary of staff requirements. Operating the Kitsilano Pure Nail Bar will require a staff of 16
people. Most positions will be full-time positions and these employees will receive more
employee benefits than those with part-time positions.
Below is a summary of the estimated salary/wage costs:
Position
Manager
Assistant Manager
Nail Technician
Esthetician
Receptionist
Salary/
Hourly Wage
$65,000
$55,000
$45,000
$45,000
$15/hour
# of Staff
1
2
7
3
3
TOTAL
Total
$65,000
$110,000
$315,000
$135,000
$49,140
($15/hr*21hrs*52 weeks*3 staff)
$674,140
Employee benefits for salary employees include discounts on services in store for themselves
and family, basic health and dental, and discount deals with suppliers of beauty products. Parttime employees are paid on a wage basis and will receive no health and dental benefits. The
only benefits they will receive relate to store discounts and supplier discounts. An inherent
benefit for all employees is access to the latest fashion news and style trends. Full-time benefits
will, on average, be approximately $2,500 per employee and part-time benefits will be
approximately $1,000 per employee.
6.0 FINANCIAL PLAN
6.1 Projected Financial Statements
Projected financial statements for the next 5 years have been prepared for base case, worst
case, and best case scenarios – refer to Exhibits 1, 2, and 3, respectively. The following is a
summary of financial results under the base case scenario:
Pure Nail Bar Business Plan (Client: MPAcc Investors)
Sales
Expenses
NI Before Taxes
Income Taxes
Net Income
19
2011
2012
2013
2014
494,650
592,392
-97,742
0
-97,742
608,420
643,861
-35,442
0
-35,442
735,883
718,223
17,660
0
17,660
867,423
813,383
54,040
0
54,040
Net Present Value (NPV)
Expected Rate of Return on Equity Investment (IRR)
2015
1,004,692
813,594
173,600
17,498
173,600
113,402
32%
An average investor would have a required rate of return of 25%. However, as per Exhibit 1,
the expected rate of return on the investment (or IRR) is 32%. Since the IRR is greater than the
required rate of return, Pure Nail Bar will be an attractive investment.
6.2 Financing Budget
Pure Nail Bar will be financed by a combination of 40% ($80,000) from long-term debt and 60%
from equity financing ($120,000), for a total initial investment of $200,000. An $80,000 long-term
loan will be obtained from the bank, which is payable in 5 years with an interest rate of 4.3%
(prime + 2%) - refer to Schedule H for more information. The additional 2% is based on an
assessment of the company as a medium risk venture. The main reason for this risk
classification is because Pure Nail Bar is a service based company, and accordingly, it is not
capital intensive. This reduces the initial amount of financing required from the bank, which
lowers the company’s risk. Furthermore, there is a large consumer base for the services offered
by Pure Nail Bar and it is situated in a highly popular and well-frequented area. This lowers the
risk of the company even further as there is a stable consumer base for its products. The
remaining $120,000 will be financed by a combination of contributions from individual owners at
33% and from angel investors at 67%. As the business will be owned by 4 individuals, each
individual will invest $10,000; for a total of $40,000. The remaining $80,000 will be provided by
the angel investors.
6.3 Dividend Policy
In the first 4 years of operations, Pure Nail Bar will re-invest its profits within the business. In
year 5, 15% of cash flow from operations will be paid out as dividends. These dividends will be
paid out to all equity shareholders.
Pure Nail Bar Business Plan (Client: MPAcc Investors)
20
6.4 Management Information System
The following are the key financial information that will be provided on a monthly basis for
management decision making:

Revenues and sales volume from each type of treatment: manicures, pedicures, waxing,
and massages.

Amount of cash on hand at the end of each month and a detailed listing of cash receipts
and disbursements.

Inventory levels of manicure, pedicure, and waxing supplies.

Actual costs incurred specifically for manicure, pedicure, and waxing supplies.
6.5 Investment Analysis
The following are financial goals which Pure Nail Bar will strive to achieve:
1. To earn a 15% average return on the equity investment in 5 years.
2. To earn a positive net income in the 3rd year of operations.
3. To have a payback period not exceeding 5 years.
Refer to Exhibits 1, 2, and 3: Base Case, Best Case, & Worst Case for calculations of
performance analysis and payback period.
Evaluation of financial goals
Goal: Earn a 15% average return on the equity investment in 5 years
Scenario
ROE
Worst Case
-11%
Base Case
19%
Best Case
50%
As displayed above, provided sales projections under the base case scenario are met, the goal
of a 15% average return on equity will be met and exceeded.
Goal: Earn a positive net income in the 3rd year of operations
Scenario
Year 3 net income
Worst Case
($21,436)
Base Case
$17,660
Best Case
$61,101
As displayed above, provided sales projections under the base case scenario are met, the goal
of a positive net income in the 3rd year of operations will be met under the base case scenario.
Goal: Have a payback period not exceeding 5 years
Pure Nail Bar Business Plan (Client: MPAcc Investors)
Scenario
Payback period
Worst Case
Greater than 5 years
21
Base Case
4.91 years
Best Case
4.01 years
As displayed above, the goal of a payback period not exceeding 5 years will be met under the
base case scenario.
6.6 Risk Mitigation
As there are various risks to Pure Nail Bar’s proposed business venture, the following are
mitigation strategies in response to each risk:
Risk
Price – Customers may be
unwilling to pay for Pure Nail
Bar’s services at its
proposed prices
Mitigation Strategy
 Pure Nail Bar will price its services within a price range that is
reasonable to its closest competitors. For example, the prices
for basic services currently offered by Pure Nail Bar are
comparable to within $5 of Ruby Nail Spa – a competing nail
salon in Vancouver. As Ruby Nail Spa is a solvent company
which has operated for several years, pricing Pure Nail Bar’s
services within $5 of Ruby Nail Spa’s services is deemed
reasonable.
 The company is located in an area catered to medium to high
income individuals. Accordingly, the prices for items in stores in
the surrounding area are priced in a similar range – medium to
high. As such, Pure Nail Bar’s pricing is reasonable in relation to
these businesses.
Quantity – Pure Nail Bar
 Pure Nail Bar will ensure it sufficiently advertises and
may be unable to generate
promotes its services through a variety of different mediums,
enough sales volume from its such as magazine advertisements and Facebook in order to
services to recover its costs
generate enough customer demand and awareness of the
company and its services.
Labour Inputs – there may
 Vancouver has several beauty and estheticians schools such
be an insufficient supply of
as John Casablanca and Blanche MacDonald that provide the
skilled workers to provide the level of skills and training for future Pure Nail Bar employees
quality of services required
 The unique environment and leadership skills of the
for the venture
management team will support a fun and positive work
environment that will be important for workers in this industry
 The wages offered in the capital budget are consistent with
competitive rates
Location – the target
 A real estate agent has already been contacted to show and
location may not be available negotiate an offer on the target location
or may not be available at
 If the target location becomes unavailable, the target
the budgeted price
neighbourhood is still viable as the main shopping street is
expanding each year.
 There are also similar neighbourhoods in Vancouver that have
similar characteristics as the Kitsilano area, such as South
Granville, West Broadway, Newport Village in Port Coquitlam,
Denman Street (by English Bay) and Kerrisdale.
Pure Nail Bar Business Plan (Client: MPAcc Investors)
22
7.0 OVERALL SUMMARY
Currently the nail and beauty services industry has a wide customer base where individuals,
mostly women aged 16 – 40, seek nail and beauty services in order to meet their routine
grooming needs. Since maintaining ones nails can become a mundane task, there is an
opportunity in the industry to attract individuals who would like to break out of their regular
routines and find a new, fun, and trendy place for nail and beauty services that offers more of an
experience rather than just a quick, dull nail care maintenance service.
To take advantage of this opportunity in this industry, Pure Nail Bar will differentiate itself by
focusing its efforts on the social aspects of providing nail and beauty services. By providing a
fun and trendy atmosphere, in which customers can sit at the nail bar and get their nails done,
customers will be attracted to Pure Nail Bar as a place for socializing and relaxing around
friends.
Pure Nail Bar’s critical success factors include the following:

Providing a fun, trendy, and social environment for individuals to receive beauty
services;

Having friendly and knowledgeable staff deliver quality and personal beauty services
that shape the ultimate “Pure” customer experience; and

Providing fashion-conscious and quality services at reasonable prices.
In order to ensure Pure Nail Bar attains these critical success factors, it will ensure it selects
employees who are vibrant, friendly, fashionable, and sufficiently trained. Additionally, the firm
will provide annual professional development courses to inform the staff of new and upcoming
trends, as well as address any areas for improvement. Furthermore, Pure Nail Bar will arrange
its floor plan and select furniture and decorum, which will be conducive to its vibrant and fun
social atmosphere. To market the company, Pure Nail Bar will place advertisements in wellknown Canadian fashion magazines and social networking sites, such as Facebook and Twitter
Based on the financial projections, under a base case scenario, investors of Pure Nail Bar can
expect an average return on equity of 19%, and a pay-back period of approximately five years.
Pure Nail Bar Business Plan (Client: MPAcc Investors)
23
REFERENCES
Bank of Canada. 2010. “Prime Rates for Business Loans”. Rates. Retrieved July 3, 2010 from
http://www.bankofcanada.ca/cgi-bin/famecgi_fdps.
BC Hydro. 2010. “BC Utilities Commission approves interim rate change for Fiscal 2011”.
Business Rates. Retrieved July 3, 2010 from
http://www.bchydro.com/youraccount/content/business_rates.jsp.
Beacham, Will. 2010. “Nature may hold the key to recovery”. ICIS Chemical Business, Vol. 277
(14). Retrieved June 19, 2010 from the EBSCO host Business Source Complete
database.
Beauty in the Buff (Beauty). 2010. “Beauty Stops in the City”. Beauty in the Buff. Retrieved June
20, 2010 from http://beautyinthebuff.wordpress.com/2010/01/19/beauty-stops-in-the-city/.
BizMap Market Area Profiles. 2009. “Kitsilano 4th Avenue”. Neighbourhood Profile. Retrieved
June 19, 2010 from http://www.bizmapbc.com/neighbourhood-profiles/kitsilanoneighbourhood.pdf.
Capital Regional District (CRD). 2010. “Juan de Fuca Retail Water Rate 2010”. Retail Water
Rates 2010. Retrieved July 3, 2010 from
http://www.crd.bc.ca/water/waterbilling/residentialrates.htm.
DesignQuote.net. 2010. “Web Design Cost Estimate Calculator”. DesignQuote.net. Retrieved
July 3, 2010 from http://www.designquote.net/html/dq_estimate_wizard.cfm.
Global Cosmetic Industry. 2010 April. “The What on ‘Y’”. Global Cosmetic Industry, Vol 178(4),
p. 8.
Google maps Canada. 2010. “4th Avenue West, Kitsilano, Vancouver, BC”. Google maps.
Retrieved June 20, 2010 from http://maps.google.ca/.
Leighton, Kathleen. 2009 Jun/Jul. “The point is to relax”. Women in Business, Vol. 61(3), p. 13.
Pure Nail Bar Business Plan (Client: MPAcc Investors)
24
Rogers Publishing. 2010. “Advertising Rates”. RogersPublishing.ca. Retrieved July 3, 2010 from
http://www.rogerspublishing.ca/portfolio/consumer/loulou_eng/rates.htm.
Statistics Canada. 2009. “Medial total income, women, by province and territory”. Statistics
Canada. Retrieved June 19, 2010 from http://www40.statcan.ca/l01/cst01/famil108aeng.htm.
The Residential Group (TRG) Realty. 2010. “Listing Details – West 4th Avenue”. TRG Realty.
Retrieved June 20, 2010 from http://vancouver4lease.com/3692-West-4th-AvenueVancouver-mylistings-8313666.property#-.
Pure Nail Bar Business Plan (Client: MPAcc Investors)
25
APPENDIX I - SWOT ANALYSIS
Internal Strengths
 Reasonable prices to attract customers.
 Unique approach and competitive
advantage as Pure Nail Bar offers a
different approach to nail care that is
affordable but enjoyable. This differs from
other beauty/nail salons which often focus
on function versus comfort.
 Unique ambiance that combines unique art
& furniture giving Pure Nail Bar a different
feel that appeals to a wide demographic of
women from 16-40 years old.
 A variety of services including usual
manicure & pedicure services, and services
for children under 12 and massages for
those looking for a spa-like offering.
 Brand power from wide press coverage
since the first location was opened in
fashion blogs, fashion magazines, etc.
 Up to date promotion. ie. Twitter &
Facebook.
 Product offerings include current fashion
trends and are communicated to customers
via Facebook, Twitter, and on-site.
 Clean and sanitary environment in
providing its services.
 The arrangement of the stores and the
seating style is conducive for socializing,
which is a key factor that is commonly
noted by customers.
 Shops allow customers to walk-in, which is
convenient for customers as they do not
have to book far in advance to receive
services.
Internal Weaknesses
 High costs to start up a new location.
Capital costs would need to be incurred for
a wide variety of capital items including
equipment, furniture, decor, etc. All of these
items would also be acquired with the
unique ambiance of the company in mind –
ie. a modern and unique feel.
 Challenges in finding qualified staff as there
is not a large supply of nail technicians and
receptionists. These staff members must
have not only the technical skill required,
but also a personal skill which allows them
to be relatable to customers.
 Pure Nail Bar has a relatively simple
business structure, and can thus be easily
imitated by competitors.
 As the focus is on providing a unique
experience, the trade-off is that the speed
of the service being provided may
decrease.
External Opportunities
 Current trend towards “hipper” ways of
getting mundane tasks accomplished. More
consumers are seeking to look good, at a
reasonable price.
 Small, trendy shopping districts and
neighbourhoods are excellent locations for
Pure Nail Bar store-fronts. People
consistently look for smaller, and more
intimate experiences.
 Large demographic of women in their early
External Threats
 The idea of creating a trendy nail/beauty
salon is easily imitable.
 Large amount of competition from other nail
salons which offer the same basic services.
 With the recession, people have become
more cost conscious.
 Home manicure and pedicure sets are
widely available and could act as a
substitute for customers of Pure Nail Bar.
 In malls, there is often a high saturation of
Pure Nail Bar Business Plan (Client: MPAcc Investors)
twenties to late thirties who frequent these
establishments in order to relax, pamper
themselves, and to meet their aesthetic
needs. Teenagers with disposable income
(age 16+) are also interested in getting
beauty treatments at trendy places.
 Although there has been a recession, costconsciousness has been shown to have
less of an effect on beauty and cosmetics.
However, those beauty services that are
offered at a reasonable price are wellreceived in times of economic distress.
26
nail salons and beauty parlours, which can
offer competition for Pure Nail Bar.
 Trends of what is considered “cool” or not
are constantly changing; thus, there is the
risk that Pure Nail Bar could fall off the map
as a trendy location.
Pure Nail Bar Business Plan (Client: MPAcc Investors)
27
APPENDIX II - PESTE ANALYSIS OF THE BEAUTY SALON INDUSTRY
Political
Economic
Socio-Cultural
Technological
Environmental
 Grants are available to the company as a small business
 Health and safety regulations for running a salon are applicable
 Stable political environment in Vancouver and overall in Canada, which is
important for functional beauty salons
 The beauty industry is one which requires customers to have disposable
income
 Market crash in 2008 means more people became money-conscious.
However, this has been shown to have a minimal effect on the beauty
industry as people are still willing to spend money in this area
 Main customers of manicures/pedicures are women
 Trends applicable to middle-class teenagers as well as women aged 16-40
 Women are looking for affordable ways to relax, and to meet their aesthetic
needs
 Having a healthy appearance is an important point to many women’s
physical and mental health
 There is increased health consciousness which involves taking better care
of one’s body
 Larger emphasis on quality of services received
 There is not a heavy reliance on technology in the beauty industry
 New technology is available to make salon visits more enjoyable (ex.
televisions, comfier accommodations, faster and more efficient tools for an
efficient and flawless experience)
 Increased communication opportunities are available for trendy businesses
including Facebook & Twitter
 Point of sale technology can be used by companies in this industry to
better track sales and also demographic details of customer to better
customize experiences
 Scheduling and booking tools are also available electronically to improve
the planning experience
 Limited environmental factors and impact
 Harsh chemicals used in nail polish products, and the issues associated
with disposal
 Animal testing in some cosmetic products
Pure Nail Bar Business Plan (Client: MPAcc Investors)
APPENDIX III – PLACE: LOCATION OF NEW PURE NAIL BAR
The proposed location of the new Pure Nail Bar is at 2137 4th Avenue West in Kitsilano,
Vancouver, British Columbia. The below image depicts the location of the new store.
Source: (Google maps, 2010)
28
Pure Nail Bar Business Plan (Client: MPAcc Investors)
APPENDIX IV – PROMOTION: GENERATING A UNIQUE ENVIRONMENT
This is an example of what the physical environment would look like in a Pure Nail Bar.
Source: (Beauty, 2010).
29
Pure Nail Bar Business Plan (Client: MPAcc Investors)
30
APPENDIX V – LABOUR REQUIREMENTS
The following schedule shows staff demonstrates the staff requirements on a per week basis.
Position
# Full-Time
Staff
Manager
1
Hours/
Week/
Person
40
Assistant Manager
2
37.5
Nail Technician
7
37.5
Esthetician
3
37.5
Receptionist
# Part-Time
Staff
3
21
Notes
 Works 5 days a week, and at
least 1 Saturday or Sunday
per week.
 Each assistant manager
works alternating shifts so
that there is always an
assistant manager working
at all times.
 There is always at least one
nail technician available (and
sometimes more than one,
especially on the weekends).
 There is always at least one
esthetician available (and
sometimes more than one,
especially on the weekends).
 There will always be only
one receptionist working per
shift.
Pure Nail Bar Business Plan (Client: MPAcc Investors)
31
APPENDIX VI – POSITIONING MAP
The below positioning map examines the market positing of Pure Nail Bar in comparison to its
nail salon competitors in Kitsilano.
Metrics:
 Quality: professionalism of service, amenities, and atmosphere
o amenities: complimentary refreshments, relaxation rooms, robes, slippers, and
shower facilities
o atmosphere: quality of artwork, furniture, and entertainment (music, television,
magazines)
o experience: ambiance, comfort, enjoyment, social aspects
 Price: based on the average price of services
o High: Range of service prices $50 - $350 depending on the type of service
o Low: Range of services $10 - $80 depending on the type of service
 Players:
o Absolute Spa: fully equipped hotel luxury spa with complete amenities
o Solarice Spa: mid-range spa
o Kitsilano Nails: local nail salon
o ProfessioNAIL: nail salon franchise
o Independents: small individual nail salons
Price
Absolute Spa
Solarice Spa
PURE NAIL BAR
Kitsilano Nails
Independents
ProfessioNAIL
Independents
Quality
Pure Nail Bar Business Plan (Client: MPAcc Investors)
32
APPENDIX VII – ORGANIZATIONAL STRUCTURE
Store Manager
Assistant
Manager (2)
Estheticians
(3)
Nail
Technicians (7)
Receptionist
(3)
Pure Nail Bar Business Plan (Client: MPAcc Investors)
33
APPENDIX VIII – LAYOUT
B
D
H
K
A
H
F
G
C
E
C
(Legend below)
J
Pure Nail Bar Business Plan (Client: MPAcc Investors)
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Description of the Facilities:
Section Description
A
This is a small changing room for clients receiving wax treatment
B
This is the storage room and employee lounge.
The storage room will hold additional supplies and tools that are used on an ongoing
basis. It will also have a basin for cleaning reusable supplies (like tubs for foot
soaking), as well as a washing machine and dryer to clean towels and linens.
C
These are the two treatment rooms used for the waxing treatments
D
This is the client and staff bathroom that will also be wheelchair accessible
E
This is the main treatment area.
These 2 sofas will hold 6-8 clients and can be reserved for group events.
The Nail Technicians will sit on stools across from the client and will provide pedicure
treats and other foot treatments
F
The circles represent 2 comfortable chairs next to a small end table. This treatment
area can be reserved for a small party of two when friends want to have treatments
side by side.
G
This is the iconic white nail bar and bar stool area where the manicures will be done.
This area will seat 5-6 clients.
H
These walls will have flat screen televisions (minimum 42 inches) for Sex and the
City, “Chick Flicks”, and other client favourites to air.
J
This is the opening reception area where the client will be initially greeted and signed
in by a receptionist or manager. This is also where the POS machine will be located
to when clients pay for their treatments.
K
This is a small waiting area for the waxing treatments for family and friends to wait
during treatments or for clients to relax before treatments.
(Furniture & Fixtures included below)
Pure Nail Bar Business Plan (Client: MPAcc Investors)
35
APPENDIX IX - CAPITAL BUDGET
Refer to excel Schedule F for a calculation of the total capital expenditures required.
Item
10 manicure &
pedicure sets
10 paraffin wax
bowls
10 foot spas
10 waxing
heaters
10 nail dryers
2 wax treatment
beds
2 long bar
tables
6 comfortable
bar stools
2 pedicure
chairs
1 soft white
chairs
2 white leather
sofas
3 small square
side tables
1 reception
desk
Description and Use
- These are the tools used to perform manicure & pedicure treatments
- These should be replaced annually
- Total cost: $2,500
- Paraffin wax bowls will be used during manicure & pedicure treatments
- These should be replaced every 2 years
- Total cost: $3,000
- Foot spas will be used to perform pedicure treatments
- These should be replaced every 2 years
- Total cost: $1,500
- Waxing heaters will be used to melt the wax needed to perform waxing
treatments
- These should be replaced every 2 years
- Total cost: $2,000
- Nail dryers will be used to perform manicure & pedicure treatments
- These should be replaced every 2 years
- Total cost: $1,350
- One bed per treatment room, labelled “C”
- Total cost: $2,600
- Labelled “G” in Appendix VIII are for the manicure treatments
- The tables should be large enough to seat 6 clients
- The tables should have some storage space on one side of the bar for the
manicure supplies and tools.
- Make sure the bar is not too deep because the nail technician will be
applying the treatment from across the bar
- The bar should be stain resistant and durable since a clean appearance is
really important
- This bar is essential as it is the bar in Pure Nail Bar
- Total cost: $2,800
- These bar stools must be comfortable and chic, and they should match
the iconic nail bar and should all be the same.
- Total cost: $1,260
- 2 chairs used to provide treatments in the general treatment area
- Total cost: $4,390
- 1 chair for the waiting area for the waxing treatments
- Total cost: $160
- Each sofa should seat 3-4 people
- The two sofas will be located in the general treatment area “E”
- Total cost: $1,780
- 2 tables will be used in the general treatment area to hold magazines and
nail polish selections
- 1 table will be used in the waiting area for the waxing treatments
- Total cost: 240
- The reception desk will be used to hold the POS machine and the
reservations via computer or paper schedule book
Pure Nail Bar Business Plan (Client: MPAcc Investors)
-
Artwork
Storage shelves
and containers
-
Lighting
-
Toilet
-
Sinks
Washing
machine &
Dryer
Towels &
Linens
2 flat screen TV
3 Computers &
Software
-
36
Desk label is “J” in Appendix VIII and is the first thing clients will see and
should have sufficient space and storage for a clean presentation
Total cost: $1,000
Pop-culture, animated art will be used to decorate the walls of the nail bar.
They will be consistent with the colour palette of the nail bar and will
reinforce the company’s image. See Appendix XI for 2 samples
Total cost: $500
An inventory of supplies will be kept in the storage room and staff lounge
labelled as “B” in Appendix VIII
There should also be large bins to store tubs that need to be cleaned
Each treatment room should also have a basic storage unit to hold the
consumable supplies
Total cost: $2,500
There should be sufficient light over the manicure bar and the sofas and
chairs in the main treatment area
Softer lighting can be used in the treatment rooms & in waiting area
Total cost: $750
Located in room “D” of Appendix VIII for use by the clients and
employees.
One bathroom facility and it should be wheelchair accessible
Total cost: $100
There should be a regular bathroom sink in room “D” of Appendix VIII
An additional basin sink should also be available in the employee area.
Small tubs will be used for an additional foot soak for the pedicures and
the tubs need to be filled and cleaned for each use.
Total cost: $340
The washing machine & dryer will be located in the storage room, labelled
as a “B” in Appendix VIII
The machines will be used to clean towels and linens used during
treatments
Total cost: $ 3,200
Towels & linens should be replaced annually
Total cost: $800
A flat screen TV is essential for the main treatment area (2nd is optional) &
screen should be mountable on the wall and should be at least 42”
Total cost: $2,400
Computers installed with a POS software, accounting, and inventory
tracking application will be used to enter in sales transactions, keep track
of inventory, and prepare financial statements
Total cost: $5,000
Pure Nail Bar Business Plan (Client: MPAcc Investors)
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APPENDIX X – PROCESS FLOW: CLIENT EXPERIENCE
1. Make
Appointment
(60%) or Walkin (40%)
9. Clients pass
on positive
feedback to
friends and
family
2. Sign-in with
Admin
8. Obtain
customer
feedback for
improvement
3. Admin
notifies
esthetician or
nail technician
4. Client
prepares for
treatment (if
applicable)
7. Payment
6. Clients
participate in
the
entertainment
and relaxation
process
5. Treatment
Pure Nail Bar Business Plan (Client: MPAcc Investors)
APPENDIX XI – SAMPLE ART
38