Start a Unique Business: Nail Salon & Coffee Shop - Essay Sample

Introduction

Every great business idea begins with the conception of the possibilities and potential of the business idea to meet the needs of the consumers (Nagle & Muller, 2017). Nail Salon & Coffee Shop is one of the most promising and realisable business ideas that seek to meet the unique service need of consumers. The business idea is both unique and strategic, which makes it one of the most identifiable aspects of the concept. This report will be crucial towards establishing the primary and the secondary market for the business. This part of the report will assess the financial elements such as the break-even analysis, sources of finance, revenue streams and the cash flow analysis. Nail Salon & Coffee Shop is an instrumental approach to creating employment and resolving the needs of the consumers. Nail Salon & Coffee Shop combination is both unique and features the most professional approach of employment and meeting the client needs (Kumar, 2016). Nail Salon & Coffee Shop has a high chance of profitability due to the unique nature of business and the investment in a sales and marketing force that will create awareness of the different services that are offered by the organisation. In the first year of operations, profits are expected to be low due to the low customer base a situation that will improve in the second year and the third year of operations (Kumar, 2016). Application of lean production principles and strategy in the Nail Salon & Coffee Shop will be instrumental towards improving the business profitability in the second and the third year of operations. In the first year, the high cost of marketing and sales will be detrimental towards potential sales of the business, in the second year the investment in social media marketing and the growth of customer marketing will be instrumental in the growth of sales and the profit margin (Ekpe, Mat, Yaacob, & Rahim, 2018). Therefore, cutting unnecessary costs and avoiding wastages will be instrumental in increasing sales, revenue, and the profit margin for the Nail Salon and Coffee Shop in the first three years of operations. This report will assess the potential and feasibility of Nail Salon & Coffee Shop idea and the potential of the business idea incorporating the lean business which will be instrumental in increasing the overall business profitability and break-even of the business.

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Customer Value Proposition Canvas

A customer value proposition refers to the description of the critical strengths of why consumers should use a particular product or company services. In this case, the primary value proposition for Nail Salon & Coffee Shop is the seamless blending of the services which complement each other and meets the customer service needs. Most customers receiving nail services seek beverages to sip down while they get their nails done. As such, the Nail Salon & Coffee Shop business model is a motivation towards the holistic assessment of the customer needs. The customer service is also a significant value proposition for Nail Salon & Coffee Shop. Every customer seeks a very responsive customer service which can guide and provide valuable information on the services offered and also to improve the convenience of the customer goods and services access. Nail Salon & Coffee Shop provides its customers with high convenience through online booking and reduced wait time which has been instrumental towards the creation of customer value proposition.

Service quality refers to the ability of the start-up to meet the expectations of the consumers of goods and services. The definition and meaning of service quality vary from one individual to another but play an instrumental role in creating customer value. While service quality intangible products can be estimated using the quality and quantity of the product the service quality of services is difficult to estimate because different people perceive service quality differently (Cossio-Silva, Revilla-Camacho, Vega-Vazquez, & Palacios-Florencio, 2016). Service quality plays a significant role in the establishment of an organisation reputation and competitive advantage. Service quality ensures that an organisation can maintain the market share and also to penetrate new markets (Gong, Choi, & Murdy, 2016). An organisation must assess the organisation service quality to ensure that it meets the needs of the consumers. Continuous improvement of service quality ensures that an organisation stays afloat amidst competition and increases the start-up ability to penetrate new markets through improved organisation reputation which enhances the ability of an organisation goods and services to appeal to the consumers.

Service management makes an organisation shift from a traditional profit-based strategy to a customer-centric approach which is instrumental towards creating value. Customer satisfaction plays a significant role in the development and maintenance of service quality. Service quality is based on the perspective of the customer towards an organisation service point quality. The maintenance of service quality is not an option for start-up organisations but a requirement for survival and continued productivity (Mahmoud, Hinson, & Anim, 2018). The advent of technology and social media has significantly complicated the ability of an organisation to maintain service quality due to the ease of the organisation losing its popularity. Social media makes it possible for consumers to share their service encounter with other consumers which can have a positive or negative implication on the demand of an organisation goods and services. Service quality requires an organisation to actively review and engage with the consumers to ensure that the products meet the needs of the consumers through customer-based service development goals (Mahmoud et al., 2018).

Value is co-created between firms and consumers, collaborative practices between companies and their product consumers result in the creation of alignment in which the community association results to understanding and engagement between companies and customers. These results to the creation of shared commodity value, it is important for the management team to practice realignment strategies to be in the same level of thought and taste with their consumers.

"Lean" Business Model Canvas

One of the most undesirable events in any business operations are wastages which are detrimental to the overall profitability of a business. Nail Salon and Coffee Shop is an essential public space which provides aesthetic beauty and coffee services to the customers. Lean principles are wastage minimising approaches of production that will ensure that the start-up creates high-quality products for the exact demand without wastages which reduces the overall profit margin (Gulyaz, van der Veen, Venugopal, & Solaimani, 2019). Lean principles are based on just in time supply of goods and services; the start-up should have a clear idea of the right quantity of demand where and when. Lean principles application in Nail Salon & Coffee Shop's goods and services production is possible through the existing improvements in communication and transport which have reduced the time taken to get the product or service from the producer to the consumer (Gulyaz et al., 2019). Use of inappropriate technology to process and package Nail Salon & Coffee Shop's products might compromise the quality and shelf life of the products. It is crucial to invest in technology to improve the quality of services being offered by the local council and the frozen food distributors. Appropriate technology will also reduce the problem of defective products and increase the value of the product or service.

Lean manufacturing is an essential strategy in the production Nail Salon & Coffee Shop's product and services because services are complex to package and produce. In the manufacture of beverages for the business, time is a significant factor which needs to be considered as well as overproduction of more than the actual demand in the market which results to wastage (Gustafsson, Chirumalla, & Johansson, 2018). Application of lean principles in the manufacture of coffee could help reduce wastages in the Nail Salon & Coffee Shop. The initial process of the lean principles is making the process flow. When the process flows, the consumers are promised a steady supply of coffee and nail services from the new venture. The process is made to flow through optimisation of the supply chain and inventory to make sure that the start-up services are in line with the consumer demand (Gustafsson et al., 2018). This can be done through decentralisation, departmentalisation and creation of a distinct line of management of the production. Lastly, pull is the act of producing only what is being desired by the consumer; this increases the product value and reduces wastages through defective products. The start-up can improve the value of the products and services by producing only what is desired by the consumers as well as meeting the legal requirements of operations which can improve service delivery by concentrating on the services that the market need (Gustafsson et al., 2018).

The lean business model seeks to satisfy the customers while seeking to maximise the cost of production and the number of wastages. Higher customer satisfaction is instrumental towards long term business sustainability. Increased customer satisfaction is associated with high positive returns which attract customer goodwill and sales growth (Aarntzen, 2016). One of the most important steps towards a lean start-up for Nail Salon & Coffee Shop is the understanding of the specific customer needs which is instrumental towards designing services and products that are needed by the consumers and contributes towards preventing wastages. The lean business canvas for Nail Salon & Coffee Shop by understanding the customer needs and preferences will be instrumental in preventing time wastage and trials of products which creates high wastage of the resources (Aarntzen, 2016). Building a wrong product results in loss of precious organisational resources which can be prevented by ensuring that Nail Salon & Coffee Shop creates a portfolio of the potential organisation customers and their needs.

One of the best approaches of achieving lean operations in Nail Salon & Coffee Shop is through the adoption of the lean sigma. The lean principle establishes best avenues through which the new Start-up can be able to optimize quality of the products. Lean sigma policies play an instrumental role towards maximization of the business capital. Nail Salon & Coffee Shop can benefit from lean six sigma implementation through reduced wastages which creates higher profits. Lean sigma involves team effort and can be instrumental towards reducing overproduction, defective products, unnecessary transportation and wait time. Therefore, multiple departmental cooperation and planning will be instrumental towards the success of the new start-up. Lean sigma practices entails eradicating all the potential wastages which emanates from the stages of production that are not necessary. Lean approach assesses the root cause of waste to create a streamlined smooth running process.

Lean sigma is essential towards improving efficiency and profitability. The lean six sigma application by Nail Salon & Coffee Shop will involve reducing performance variations through the elimination of the causes of waste in production such as; inventory, motion, overproduction, waiting, over processing, skills, and defects. Team effort is necessary in the attainment of the lean six sigma strategic objectives of wastages elimination by improving business practices and ensuring high qual...