2. Business Description / Financial and Organizational Model of a Community Beauty Salon.

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Summary Content

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The idea behind the company was to open a beauty salon offering hairdressing, cosmetic and makeup services. People who respect self and care for themselves can't imagine their lives without a beauty salon, where they can relax, forget their worries, and immerse themselves in the world of beauty. Beauty salon services aren't considered everyday products, so the company must strive to be engaging for its clients to immerse them in a world of beauty creativity. The company's main goals are as follows:
- Successfully establish a foothold in the market;
- Meet consumer needs;
- Expand the client base through various sponsorship events;
- Become a strong competitor to the fashion industry, such as parfolios, castings, and fashion shows;
- Operate successfully and profitably in a changing market environment promotion comertical offers.

The company will provide services directly, with close personal collaboration between service provider and consumer prevalent. Clients will visit the beauty salon themselves, with agents being used when needed. Since no product inventory is maintained, the services of wholesalers, retailers, or industrial distributors are not required. 

Picture 1. Channel of the implementation of beauty services of the private enterprise of K. Korenevskiy “GrazuteRoom”.

The GrazuteRoom - http://118.lt/imones/grazuteroom-k-korenevskio-ii-kirpykla/7839133

The beauty salon will be interested in satisfying the needs of consumers with a wide range of services and will strive to introduce new innovations and technologies into the beauty market, therefore it will constantly conduct marketing research, organize sponsorship support, maintain contacts with potential consumers, adapt services to consumer requirements and take risks. The beauty business can be influenced by suppliers, competitors, sales agents, consumers, the media, and company employees. These factors can positively or negatively impact a company's success. The business will also be influenced by elements of the macroenvironment—economic, political, legal, sociocultural, scientific, technological, and natural. Consumer income, commodity prices, the country's economic situation, inflation, unemployment, potential consumer base, and specific legal regulations that the company must comply with in its operations will all have a significant impact on the company's operations. That all these macroenvironmental elements will influence a company's marketing decisions, the company has no direct control over them. 

 The salaries of hairdressers and makeup artists working in the beauty salon will be calculated using a flat-rate system. This system means that wages are directly related to the number of clients served and the procedures used. The average salary for a hairdresser and cosmetologist will be 1,161.33 Euro, while for a makeup artist it will be 1,083.33 Euro.

 A monthly salary has been established for the director and accountant working at the beauty salon. The director's salary will be €2,000, and the accountant's will be €800.

The indirect costs of the "GrazuteRoom" beauty salon will amount to € 15,800.87 . The average price of a haircut at the salon is € 21.95 excluding VAT and € 26.56 including VAT. Makeup treatments cost € 32.81 excluding VAT and € 39.70 including VAT.

After providing services, the company expects to earn a gross profit of € 41,519.29 before six mouth , which will be reduced by the company's expenses, which amount to € 68,493.66. Therefore, the company's net profit at its peak will be € -26,973.36, meaning it will incur a loss. However, we plan to turn a profit in the future, as the loss decreased over the first six months. In the first month, it was € -8,262.17, and in the sixth month, it decreased to € -3,291.91.

We're opening a beauty salon because we find this activity attractive and necessary. We're medieval, so it's no surprise that we're interested in beauty. We love creating beauty, delighting people, and making them happy, so we believe opening a beauty salon is the most appropriate solution to achieve these goals. The company name, "GrazuteRoom," vividly reflects the world of beauty. Graz to Room this is the city, the small castle of beauty of the city, . GrazuteRoom is Room in this castle of Venus — is this fantasy goddess, ruling over love and beauty.

In our plan the beauty salon will be staffed by positive employees who will always greet clients with a smile, provide personalized consultations, and provide pleasant and high-quality service. They will strive to meet clients' expectations, fulfill their wishes, and create a pleasant atmosphere within the salon.

Service characteristics

Indicator		Haircuts&Cosmetic	Makeup
Benefit		Renewed, healthier hair and skin. Professionals will select the perfect hairstyle and cosmetic care for your specific needs.	Masking of imperfections, highlighting advantages, rejuvenation, renewal.
Real product	Functions	Only brand-name skincare, hair care. Only including the most stylish service of  personalized selection. High-quality service.	Natural cosmetics from only well-known brands. Personalized selection. High-quality service.
	Quality	High
	Price	High
Product with reinforcement	Warranty	Only qualified specialists, professional service.	Only qualified specialists, professional service.

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