The primary purpose of conducting a feasibility analysis is to examine or determine the practicality of a given business proposal or idea. It helps entrepreneurs to determine whether the proposed business is viable or not. One of the main benefits of conducting a feasibility analysis is to address any address uncertainties that exist in the market while having a clear picture in the industry, customers, and the nature of competition. Effective feasibility analysis enhances the success of a proposed business. Therefore, this feasibility analysis is aimed at determining the viability of Quick Fix Salon and Barber Shop, which intends to provide mobile salon and barber services.
Quick Fix Salon and Barber Shop fall under hair care service industry, which is one of the few industries that have been experiencing positive growth, even in the time of economic recession. The barbershop sector in the US has been growing over the last five years. It has grown by about 1.9% for the last five years, reaching a total revenue of about $4 billion by 2017 ( IBISWorld, 2017) . According to IBISWorld (2017), t he number of businesses entering the sector has also grown by about 0.6%. According to the analysis that was done by IBIS World, the industry will continue to experience positive growth for some years to come. Like in the case of the barber sector, the salon sector is also growing. The sector has grown by about two percent for the last five years. The number of businesses in the sector has also increased significantly. The number of women visiting the salon in the USA has been increasing, and they spend more on their hair beauty.
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The market for salon and barer services is made up of many small and big players that are competing to gain a competitive advantage. For instance, a report released by SBDC Net revealed that there were 82,000 beauty salons and 4,000 barber shops in the USA as of 2014 (SBDCNet, 2014). The major firms that continue to dominate the industry include Premier Salons, Ratner Companies, and sports clip. However, small and new entrants have the opportunity for growth, especially when they provide high quality and convenient services.
A salon and barber shop provides a wide range of services to their customers. Some of the main services that are offered by such firm include hair cutting and styling, coloring, and shampooing. However, some salon and barber shop offer additional services such as nail care, skin care, facial treatments, makeup, massage, and bikini waxing. The demand for salon and barber services varies across different customer segment. Older customers prefer personal services such as haircut, hair styling, and massages (SBDCNet, 2014). Younger customers, on the other hand, go for additional services such as facial treatments, coloring, nail care, and makeup. Currently, many young people visit solon and barber shops frequently because of the desire to maintain beauty. A new trend is emerging where women spend more money on their hair and facial beauty that buying shoes and clothes. Therefore, the demand for salon and barber services continues to grow. Specifically, the demand for mobile hair services is increasing as many modern women are busy with their families, jobs, and life that they have no time to visit traditional salons and barber shops.
Starting a small or medium size salon and barber shop does not require a lot of initial capital. Thus, staring Quick Fix Salon and Barber Shop will not require a lot of money. However, buying resources such as van may be expensive if the entrepreneur does not already one a vehicle. Nonetheless, the cost of the van may be offset by the fact that the business will not involve paying of rent. Also, with increased revenue growth in the industry, the business will generate enough incomes to run its operations while making some profits (SBDCNet, 2014). The revenue growth in the market is expected to increase for the next five years, making salon and barber business financially feasible.
According to Coduras, Saiz-Alvarez, and Ruiz (2016), entrepreneurial readiness is mainly influenced by social, psychological, and management factors. Personal commitment is one of the major factors that an entrepreneur should have before starting any businesses. The risk of failure is always high in new business, but the challenge can be overcome through personal commitment. The entrepreneur should also have the right knowledge and skills in the business area ( Coduras, Saiz-Alvarez, and Ruiz, 2016) . It is essential for an entrepreneur to have enough income to start the business. Personal income helps in addressing liquidity constraints that can result in business failure. Entrepreneurial readiness determines the success of a business.
Information from the feasibility analysis shows that Quick Fix Salon and Barber Shop is a viable business, especially because of existing and increasing demand for mobile salon and barber services. The industry is experiencing a positive growth, and it is one of the most stable industries globally. Even though the business does not require major modification, the entrepreneur needs to gain in-depth knowledge and skills about the industry and target customers to enhance the chances of success. Quick Fix Salon and Barber Shop should meet the specific needs of the target customers.
References
Coduras, A., Saiz-Alvarez, J. M., & Ruiz, J. (2016). Measuring readiness for entrepreneurship: An information tool proposal. Journal of Innovation & Knowledge , 1 (2), 99-108.
IBISWorld. (2017). Barber Shops Industry in the US . Retrieved from https://www.ibisworld.com/industry-trends/specialized-market-research- reports/consumer-goods-services/personal/barber-shops.html
SBDCNet. (2014). Beauty Salon Business Overview & Trends, 2014 . Retrieved from http://www.sbdcnet.org/small-business-research-reports/beauty-salon-2014
