Genie - Beauty treatments at home

Abstract

This study will be presenting a new opening in today’s market. The purpose of the study is to see if home beauty treatment would be a feasible business in Madrid. The present work consists of the elaboration of a business plan for the creation of an application that links beauty salons with clients, working as a third party. It takes into consideration the new environmental risks such as COVID-19 and the concept of limited time in a full scheduled day. This research work proposes a business plan for the development and market launch of Genie, a new virtual platform for independent beauty salons and stylists; a digital product with programming that allows beauty services to be booked according to the needs, location, and budget of each user, as well as the request for the same services with an innovative factor: that the services arrive at the clients' homes. Genie’s target audience is families and overworked men and women. Genie is born as a support tool for all those people who maintain their image but who, having a busy life, only have limited hours to access a beauty service; for all those who always forget to schedule appointments in advance, for all those who do not like to wait a long time to be seen or simply for those who want to pamper themselves from the comfort of their homes. An example of that would be getting ready for your wedding day. Considering the growth of e-commerce, the use of smartphones in the country and the limited offer of alternatives with service flexibility, Genie's success is dependent on its availability and friendly environment, in addition to developing a communication strategy that connects emotionally with all those people who care about their image, but who need constant reminders and motivation to maintain this lifestyle. This tool also covers the need to attract new clients for all beauty salon owners and independent stylists, and each year they make this sector to maintain good growth. Considering that no one is offering this service in Spain right now there is no competition when it comes to the business model. However, as for the services that will be offered the competition is with all salons and clinics within Madrid. But since partnerships 2 Brenda Muñoz, Jerelyn Dsouza, Sina Nygaard, and Yiting Guo will be developed with salons and clinics the competition will reduce exponentially. The more partnerships that are developed the more the competition will be reduced. As the COVID-19 has caused severe damage in numerous industries, establishing a start-up at such a formidable moment requires an integrated analysis. Thus, the financial plan is recorded based on three different scenarios that includes the interpretation of the capital structure and the financial indicators. In a realistic scenario, Genie’s average profit margin (EBIT) and net margin in five years are 39% and 25%, respectively. Moreover, as a start-up, the company can pay a 9% dividend in years 4 and 5. Such results illustrate that the stakeholders and potential investors will be able to benefit in all scenarios, which shows that Genie has the potential to become the next unicorn business in Madrid, Spain.