This report is presented to identify a business opportunity and its environment. A brief description of the idea itself is initially outlined. Further, the report explains the market and issues which may arise while setting up the business. To find out whether this business proposal would be successful it is necessary to analyse aspects featured below. 2. Business opportunity Airports are places where thousands of people wait for their flights every day. It is a huge international market with many opportunities for entrepreneurs.
At Gatwick Airport there is plenty restaurants and shops where people can have something to eat or buy souvenirs but there is no place where they can look after their bodies and minds, place for relaxation. Why not to make waiting time of bored and tired travellers pleasant? The idea is to open a beauty salon at one of the busiest airports in the UK. Opened 24 hours a day, option for the most unluckiest passengers who got stuck overnight at the airport and for regular travellers having some free time before departure. However to start up a new business it is necessary to identify the environment.
It helps to recognise the market and business opportunities what facilitates the adaptation of corporate strategy. It is also very useful to calculate the risk and to predict any problems that may appear while setting up and further running a company, therefore all these aspects are presented in the following report. 3. Innovation – opportunity for an entrepreneur The idea is brand new and by bringing the innovation to the customers it may improve the standards of their travels and minimize issues linked to disadvantages of travelling by plane that they may come across with.
There are approximately 90,000 people (Gatwick Airport, 2011) who pass through terminal at Gatwick every day, some of them are late, the other ones arrive at the airport to early and would like to use their time productively. None of us would like to start holiday like this: Dropping by the beauty salon for a quick treatment can be a good idea to start holiday or a stressful business trip with relaxing massage. Another important opportunity for this business is possibility of quick growth and development. One beauty salon can expand into a chain of beauty rooms across the UK.
Other busy airports like Stansted or Heathrow will be potential places to locate next beauty salons. Rapidly developing beauty industry also brings opportunities to the business. New treatments and new trends enable professional training for personnel. Better qualified therapists can build strong relationship with clients and provide high quality service. There is also advantage of selling branded cosmetics and body care products. Beauty treatments in conjunction with professional advice will be an extra opportunity to make a profit from sales. 4. Potential market
The Potential market for the business will be all people travelling from or through Gatwick Airport. Variety of quick facials and waxing treatments will be the best packages for tourists waiting for their flights. The idea also focuses on busy businesswomen not having time to visit beauty salon in between business trips. Express manicures and pedicures will attract mature women as well as young girls. Moreover, the business will have a range of treatments suitable for male clients. Stressed and tired businessmen will have an opportunity to visit the salon for relaxing massage.
To sum up the idea is addressed to business travellers and tourists. The target audience is also defined by age. The structure of business clients group varies from 25 to 54 years and leisure clients group has little bit younger members, as it starts from 20 up to 54 years old. (CAA, 2010, p. 159. ). Age distribution of UK and foreign passengers at Gatwick Airport in 2010. Civil Aviation Authority, 2010, p. 159. 5. Competitors The idea of beauty salons at the airports is new so there is no serious competition. Other airport facilities like restaurants or shops attract people but provide absolutely different services.
The only store which will be competitive to the Beauty Room is World Duty Free which sells variety of good quality and branded cosmetics. 6. Issues There might be few problems which may arise while setting up this business: 1. Planning Permission – is essential to change and adapt the units use to a beauty salon what is called change of business use. This must be confirmed by Crawley Borough Council 2. Regulatory Bodies – HABIA and BABTAC give set of rules which must be abide by beauty salon. 3. H&S – The business needs to comply with health and safety work act 1974.
Good ventilation must be provided as well as proper Personal Protective Equipment to prevent cross-contamination. 4. National and local laws – business has to apply for a license with the Local Council and also has to be registered with the Local Authority and the Accounting and Corporate Regulatory Authority. 5. Insurance – Public Liability Insurance which provides cover for treatments 6. Consumer Law and Sales of Good act – business needs to be aware of these acts when purchasing and selling products and services 7.
Licences – Therapists must be fully qualified, business needs a licence for aromatherapy and manicure treatments. Purchasing Music Licence is necessary to play copyright music. 8. Contracts – Contracts with suppliers and product companies to use and sell their products. 9. Noise – as the airport is very busy place it is also very noisy. This might be a problem while running a beauty salon as clients will not be able to relax and enjoy their treatments. 10. Money – the enterprise might be too expensive due to high rent prices at the Airport, extra funds may be needed. 7. Conclusion
The process I went through researching and developing the concept was very time-consuming and required my full commitment. Researching all information showed me how much we have to know before we start up the business and that we really have to fully understand the market and its environment to fit into specific industry. Going back to my concept, it requires big funds as it is quite expensive venture however, with that extensive market, small competition and many opportunities it would succeed. I personally think it is a great idea and who knows maybe one day I will find the money and courage to bring it to life.