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Kreations Trade Market LLC

Business Plan
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Kreations Trade Market LLC

Business Plan

Executive Summary

The nail industry in the United States has grown into a billion-dollar business, with thousands of
nail technicians venturing into the business. Anyone wishing to venture into the beauty industry
cannot skip thinking of starting a nail salon as the market for nail care, and treatment has grown.
While middle-aged working-class women dominate the market, teenagers, adolescents, and men
seek these services. Pedicures, manicures, gel wraps, and nail stickers are among the most sought
nail services in this industry. Kreations Trade Market is a private; modern chic nail salon
established in Myrtle Beach, South Carolina, to exploit this opportunity and provide high-quality
nail care services to all clients. This business will serve all clients, including residents, Kreations
Trade Market majorly targets tourists. South Carolina, particularly Myrtle Beach, has emerged as
one of the tourist high traffic areas, making it a perfect location to start this business. Tourists
who visit Myrtle Beach are more likely to seek manicures, pedicures, and other nail services as
part of their relaxing and comforting activities. Kreations Trade Market aims to offer luxurious
nail care and treatment to tourists who visit this destination. The products and services offered by
Kreations Trade Market suit the prevailing tastes and preferences of the local area's population
and tourists. However, this salon will face stiff competition from other established nail salons in
Downtown Myrtle Beach. The key competitors include: Sola Salons, Nail Cuture, Nail Cuture 2,
Diamond Nails, S1 Nail Spa and Elite Design Nails and Spa. Kreations Trade Market takes a
different approach in style, communication, and making sure the customer’s needs are met; this
will help Kreations Trade Market succeed in penetrating the market. Incorporating a mixture of
culture and modernity in its services gives it a competitive advantage. Most salons focus on
delivering modern pedicures and manicures, neglecting the old ways of nail painting and
massaging of feet and hands. Furthermore, with customers growing more sensitive about their
health and protection of the environment, offering organic products and nail polishes, gels,
stickers, and other nail products with a minimal chemical component will appeal to more
consumers. The objectives of Kreations Trade Market are to create a comfortable and customer-
friendly atmosphere, satisfy customer needs and provide quality services that meet their
expectations and preferences. The firm aims to grow its business and workforce and be the best
salon clients could visit in the future. This business plan describes the company, market analysis,
operational strategy, financial plan, and the management problems that Kreations Trade Market
will encounter and possible solutions.
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Table of Contents
Executive Summary.......................................................................................................................2
Company Description....................................................................................................................5
Business Overview.....................................................................................................................5
Company Mission and Vision...................................................................................................5
Company Goals and Objectives...............................................................................................5
Company Management and Employees..................................................................................6
Key Success Factors...................................................................................................................6
Products and Services....................................................................................................................6
Market Analysis.............................................................................................................................9
Market Overview.......................................................................................................................9
Industry Trends.......................................................................................................................10
Key Direct and Indirect Competitors....................................................................................11
Competitive Analysis of Kreations Trade Market in the market.......................................13
Kreations Trade Market SWOT analysis.............................................................................13
External Factors That May Affect the Start-up and Operation of Kreations Trade
Market Salon............................................................................................................................15
Political..................................................................................................................................15
Economic...............................................................................................................................15
Social.....................................................................................................................................15
Technological........................................................................................................................16
Legal......................................................................................................................................16
Environmental......................................................................................................................16
Demographics of the Kreations Trade Market Salon Market............................................17
Customer Analysis...................................................................................................................17
Operations Strategy.....................................................................................................................18
Customer-Driven/Centric Operation Strategy.....................................................................18
Corporate and Cross-Functional Based Operation Strategy..............................................19
Competition Priority Strategy................................................................................................19
Operational Processes.............................................................................................................20
Management Summary...........................................................................................................20
Segmentation, Targeting and Positioning..............................................................................20
Marketing Strategies...............................................................................................................21
Kreations Trade Market Salon Marketing Mix (4Ps)..........................................................21
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Product..................................................................................................................................21
Price.......................................................................................................................................22
Place......................................................................................................................................22
Promotion..............................................................................................................................23
Understanding Kreations Trade Market Salon Marketing Strategy through Aaker's Brand
Identity Model..............................................................................................................................23
Financials......................................................................................................................................24
Financial Projections...............................................................................................................24
Funding Requirements............................................................................................................24
Financial Risk Assessment and Risk management Strategies.............................................26
Liquidity Risk........................................................................................................................26
Market Risks.........................................................................................................................27
Operational Risk...................................................................................................................27
Credit Risk.............................................................................................................................28
Other Risks...............................................................................................................................28
Health Hazards.....................................................................................................................28
Management Team Problems/Solutions....................................................................................28
Management Problems That Kreations Trade Market Salon May Encounter And Their
Potential Solutions...................................................................................................................29
References.....................................................................................................................................35
Appendix.......................................................................................................................................39
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Company Description
Business Overview
Kreations Trade Market is a brand new executive nail salon focused on providing high-
quality nail care to the people of South Carolina and the surrounding community. The nail salon
will not diversify into other beauty services such as make-up and body massage, but it will
specialize in offering quality nail care services. Kreations Trade Market aims at creating a
luxurious and enjoyable environment for clients. The company will showcase a stunning, well-
furnished, designed interior with a waiting area equipped with refreshments and television
screens. It will also offer numerous nail care products displayed in the waiting room. Luxury
pamper evenings will also be offered to allow those who have busy schedules during the day to
get their services in the evening. This will be a way to get them away from the commotions and
stress of the day. This nail salon's uniqueness lies in its signature services that will be unique to
the salon. Kreations Trade Market will incorporate nail services unique to diverse technicians;
their ethnicities will vary, such as Hispanic, Korean, Vietnamese, and African American. A sense
of tradition and culture will be integrated into the services to give clients. Clients will be able to
get nail care and treatment services that suit their sophisticated demands in case they do not
prefer the essential services such as simple nail polish or gel nails. Those who wish to explore
other tastes and experiences through nail art, pedicure, and manicure services will also get that
chance at Kreations Trade Market.
Additionally, organic products and services will also be incorporated to uphold healthy
living. Kreations Trade Market will be situated off of 501 inbetween Robert Grisssom Parkway
and Third Avenue South in Myrtle Beach, a high-traffic tourist destination in the town. With
Myrtle Beach being one of the most visited cities in South Carolina, it is a strategic location for
this nail salon. No tourists can leave this city without visiting this city as it is in the heart of
Myrtle Beach's downtown and one destination that that has nearby shopping and grocery for
tourists and their shopping. This high tourist traffic makes this location suitable for salon
business that relies upon the flow of customers. Therefore, situating Kreations Trade Market near
the city market will strategically attract thousands of tourists who visit this destination and wish
to get nail services unique to their ethnicities or cultures of their choice.
Company Mission and Vision
Kreations Trade Market's mission is to provide customers with quality nail care and
products that enhance their physical appearance and boost confidence. Every client leaving the
salon should be delighted with the services, and they will be allowed to leave their reviews to
ensure they get better services when they return. This is meant to win their trust and patronage.
Kreations Trade Market's vision is to provide world-class manicure, pedicure, and other
nail care and treatment services using a highly experienced professional workforce. The
customer is the center of the mission and vision, and all services will be tailored around their
needs and preferences to attain their satisfaction. This will be done to achieve customer loyalty
as satisfied customers always return and stay loyal while also bringing in others.
Company Goals and Objectives
The salon business aims to create a comfortable and customer-friendly atmosphere,
satisfy customer needs and meet their expectations of the quality of the nail care services and
products. Kreations Trade Market also aims to provide nail polish designs and artworks that meet
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customers' expectations and preferences. The business aims to attract at least 15 clients every day
and ensure those that come for the first time return every week. The firm also aims to generate
enough revenue from its sales to sustain and reimburse its workforce.
The objectives of Kreations Trade Markt include;
 Allowing the professional team of nail technicians and cosmetologist to give their full
potential in satisfying customers.
 Attract new customers every day.
 To be the best and one of the most appealing salons a client could possibly visit,
especially tourists.
 Open other outlets in other cities across South Carolina within five years of operation.
Company Management and Employees
Kreations Trade Market will be registered as a Limited Liability Corperation, with the
owner having eighty percent of the company's shares. The company will be registered with South
Carolina's Department of State as Kreations Trade Market LLC. This salon will be managed by
an experienced and competent individual who will ensure a smooth flow of operations. The
manager is a graduate in beauty and cosmetics and has worked with high-profile salons in the
past eight years. Bringing in such experience and expertise is a strategic move to start and grow
the business in this highly competitive market. This salon also aims to employ highly qualified
staff that are made up of individual contractors that are licesenced in cosmetology.
Kreations Trade Market will hire at least eight nail technicians who are well-trained and
have experience in the field. The business manager is working on hiring nail technicians who
have excellent skills in nail treatments and care, artificial nail application, nail polish, foot and
hand massages, and excellent communication. Hiring a proficient team will give this business a
good start as they will offer quality services equivalent, if not more, than those offered by
established salons in the area. This will help retain the first customers and attract more.
Key Success Factors
Kreations Trade Market is qualified to penetrate the market and succeed due to various
factors. First, according to the marketing team's survey conducted in Myrtle Beach, the local
population and tourists will be pleased to have a classy executive salon that would deliver quality
nail care and treatments and give them a luxurious feeling when getting the services. The
positive feedback from the survey promises excellent returns from the business as the
Kreations Trade Market will offer precisely what the customers want. Furthermore, the
prices offered at the salon will be fair enough to accommodate the middle-class population,
which makes the larger population of Myrtle Beach. Second, Myrtle Beach's market is also a
high-volume area readily accessible by the foreign and local population. Third, Kreations Trade
Market salon has proven to be a successful business venture in the United States following the
high demand of customers. The strategic location of a nail salon increases its likelihood of
success. Integrating an ethnic niche by offering nail services that target ethnic preferences will
also allow Kreations Trade Market to penetrate the market.

Products and Services

Kreations Trade Market will offer nail treatments and application services to different
clients. From pedicures to manicures, nail salons will offer a variety of services. While some nail
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salons specialize in providing particular services, Kreations Trade Market will offer a range of
nail services to diversify its business and develop a more extensive market base. Below is a
description of the services that the salon will be offering.
Manicures
A manicure is one of the popular services offered in nail salons that focuses on the
natural nail. A basic manicure involves treatment of the skin and cuticles around the nails. This
process begins with a nail technician smoothing the skin around the client's nails by soothing
solution in luke warm water; this helps in identifying any damaged cuticles or hangnails that may
require special attention. The nail technician identifies the type of services they will have to
perform on the client when massaging the oil. This stage gives the nail technician an opportunity
to about the client's expectations and the type of services they may require. After the massage,
the technician trims or pushes cuticles and shapes and clips the nails. When necessary, a dry
manicure is nessary for the technicians when they are asked to apply intangible gel and acrylic
fills. To finish the manicure we follow up by applying base coat of nail polish and the color coat.
Manicure is usually a quick service that allows nail techniques to attend to numerous clients in a
single day.
Pedicures
Pedicures are also standard services offered in nail salons and beauty spas. Although it is
almost similar to manicures, pedicures focus on toes and feet. Our feet act as our daily horses,
carrying the human body weight and absorbing the repeated impact during contact with the
ground. Pedicures normally start with cleaning the feet and nails, followed by applying lotion to
smooth the feet. Nail technicians soak the clients' feet in warm water before pumicing,
scrubbing, massaging with lotion, and pampering the feet. They then shape and cut toenails, trim
and push back cuticles, and then paint the base and top nail polish coats requested by the client.
Although women make up most of the clients who request pedicure and manicure services, men
also visit these salons, but they prefer plain rather than polished toes. Similar to the manicures,
Kreations Trade Market will offer various pedicure services.
Different Types of Nail Art and Designs
Kreations Trade Market will offer various nail art services to its clients during manicures
and pedicures. This is a creative way for nail technicians to paint, embellish, decorate and
enhance nails. This is usually done after pedicures and manicures, but clients can request this
service without undergoing pedicure and manicure treatments. While nail arts have been in
existence for centuries, the designs and colors of these creative nail artworks have evolved. New,
fun-looking designs and colors have emerged.
Kreations Trade Market will have nail technicians who can deliver this service to clients.
The common nail artworks that will be offered are gels, acrylics, and nail polish. This nail salon
will offer the usual nail art services, but the designs will also embrace the ethnic niche upon
customers' requests to appeal to culturally diverse clients.
Acrylic Extensions and Overlays
Acrylic nails are created from liquid monomers and acrylic powder (Truic, 2022). A nail
technician combines the components, shapes, and forms acrylic nails, normally over the nail tips
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(Truic, 2022). Nail technicians can style and shape them in different ways and color them as per
the clients' preferences. Most clients prefer sculptured nails because they are durable. The first
step in developing acrylic nails for clients is cleaning the nails and cuticles, just like in a
manicure. Next, nail technicians give nails some texture and treat them with a solvent to help
bond and set up acrylic nails. This is followed by mixing the acrylic powder and beads to create
a malleable substance applied to the clients' nails. After the acrylic, clients are left with artificial
but durable nails styled as per their preference.
Nail Polish
Nail polish can be considered the oldest nail art in the nail beauty sector. Despite the
emergence of new artworks such as gel, most women love nail polish (Truic, 2022). Nail polish
application is less costly and does not require UV lights like gel. The beauty of the nails lies in
the frequent change of designs and wearing of the latest nail polish colors and designs.
Therefore, incorporating nail polish in
Kreations Trade Market will attract regular clients who wish to maintain their nail beauty.
Expensive manicures accompanied by gels help keeps hands healthy, but the incorporation of
nail polish offers clients a cheaper option and allows them to frequent the salon as the polish is
not as long-lasting as gel and acrylic.
Nail Gel and Shellac
Nail gel is an evolution of nail polish that has become most women's preference becomes
they come at a lower budget than acrylics but are long-lasting (Truic, 2022). It has grown into a
contemporary beauty mainstay due to the impossibly glossy and indestructible look it gives to
clients' nails. Nail gel comprises more robust ingredients that stick on the nails tighter than the
conventional lacquers that do not stand daily wear. They are only cured under LED lamps or UV
light to ensure a firm grip on the nails. Nail technicians can apply gel polish on tips nails or
acrylic nails. In addition to their durability, gel polish strengthens nails and protects them from
damage during daily routines. Once applied, gel protects nails from pollutants and dirt. Nail
polish has also evolved into shellac, which constitutes a mixture of regular polish and gel.
Shellac is a mixture of the best features of nail gel, including color and no-chips, and the benefits
of traditional nail polish (ease and shine). Therefore, incorporating these services in Kreations
Trade Market will attract more customers who prefer their nails' long-lasting and protective
treatment.
Nail Wraps, Decals, and Stickers
Kreations Trade Market will also offer nail wraps. These are synthetic paper or silk
pieces that nail technicians apply to clients' natural nails and coat with a polymer resin (Truic,
2022). Wraps leave nails softer with easily bendable surfaces as they are not as thick as acrylics.
The nail technicians will use numerous kinds of wraps to reinforce clients' natural nails. These
include fiberglass, silk, and other synthetic materials that can give nails desirable shapes and
lengths. Nail wraps are the same as nail stickers. Nail stickers are nail polish strips that nail
technicians apply directly to clients' nails.
Kreations Trade Market will allow clients who wish to get messy with their nails and
upgrade their nail routines. Nail decals will also be applied to clients who request the service.
Nail decals are the same thing as stickers, but they do not have an adhesive backing. Instead,
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they have special paper dipped in water and then transferred to polished nails using a pair of
tweezers.
Other Products
Every salon or spa should sell beauty products to facilitate service delivery. Customers
should be able to purchase all products they need for their services in the salons they visit.
Kreations Trade Market will offer nail products and other beauty products to enhance the
services provided to customers. Nothing is as frustrating as going to a beauty professional to get
services and finding that the service provider does not have the required products, hence having
to trip to find the products in other stores. It is also vital for the salon to have products that
customers can use to touch up at their homes. Furthermore, it is frustrating when professionals
recommend products that they do not offer, forcing customers to look for them in other beauty
shops. Kreations Trade Market will offer a variety of nail products. Among the products that the
salon will offer include a high-quality nail file kit that is common among the target market. For
instance, many women often carry this product wherever they go to smoothen and file their nails.
Kreations Trade Market will also offer cuticle oils and exfoliators for home care treatment.
Customers can take home cuticle oils and exfoliators from the salon to get nail care and care for
their hands and legs. Customers will also be able to purchase heel treatments from this salon to
continue their treatment of scaly dry heels at home. Kreations Trade Market will offer other
products, including sparklers, fungus treatments, nail polish and gel, nail stickers, decals, and
wraps. Customers will find both nail products and quality nail services at Kreations Trade
Market.

Market Analysis
Market Overview
The nail salon segment is a booming multi-billion business reporting growth in ten years
until 2018. According to a recent report, the US's total spending on nail care and treatments was
$8.36 billion in 2018, a slight increase from $8.28 billion in 2013 (Statista, 2022). In 2019, the
revenue generation dropped slightly, reaching $8 billion (Statista, 2022). The growth of the nail
salon industry halted in 2020 following the advent of the pandemic that led to the closure of
beauty spas and salons (Yahoo, 2021). Many salons were closed for months impeding the
generation of revenue. Nevertheless, the industry is recovering from its losses as more spas and
salons re-open, and Americans get vaccinated. According to John LaRosa, a Research Director
of Marketdata, the closure of salons during the Covid-19 pandemic plunged the industry's
revenues (Yahoo, 2021). The strong growth seen in 2014 was halted in 2019, but the demand is
still high, and as more Americans get vaccinated, the salon business should expect a boom in the
next year. Marketdata reported that the value of the nail salon in the US dropped to $6.5 billion
in 2020 (Yahoo, 2021). However, it is estimated that the industry will grow by 18% in the next
year and experience a 9% average growth every year through 2025 to reach $22.6 billion
(Yahoo, 2021).
There are more than a million nail salons in the United States, which is expected to grow
in the next years. According to Statista's market research, the number of salons declined in 2018,
with the nail salons totaling 54,386, dropping from 69,738 nail salons in 2016 and 56,886 in
2017 (Statista, 2022). Despite many nail salons in the country, particularly in South Carolina, the
demand for these services is still high. Research shows that more than eight billion US dollars
are spent on nail care and treatment services every year (Statista, 2022). Therefore, venturing
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into this sector remains a lucrative deal for anyone or group thinking of starting a business.
Moreover, the demand for nail technicians is also very high and is expected to grow by 10% by
2028 (Statista, 2022). The number of employed nail technicians was 395,000, but this number is
likely to grow further with more nail salons. The significant factors leading to this rise include
population, beauty trends, and changes in people's lifestyles. This shows that the market for nail
salons is large and is still expected to grow further.
Liquid polish accounts for the largest market share in the nail beauty sector (Modor
Intelligence, 2022). Consumers' preference for liquid colors is driven by the wide range of colors
offered, easy application, and lower cost (Modor Intelligence, 2022). It is estimated that liquid
polish will still hold the largest market segment in this industry owing to its lower cost (Modor
Intelligence, 2022). Consumers are also more likely to purchase liquid polish because its
application does not require UV lights like gel. Although gel polish is garnering consumers'
attention due to its durability, its high cost may deter some consumers from getting the nail
service or product.
Industry Trends
The nail care market has proven to be one of the fastest-growing segments in the industry
as it has become an essential aspect of consumers' fashion, especially women. The surge in
beauty and fashion consciousness has led many women to visit nail salons. There has been a
frequent changing nail colors trend, which leads consumers to frequent these nail salons to get
new colors (Santra, 2019). New developments in fashion, nail polish, and other cosmetics have
set the pace for the reformation of the nail salon industry.
Gel manicures have further revolutionized the nail salon industry, with the procedure
rapidly rising in popularity (Santra, 2019). The technique has grown popular due to its different
feel, polish-like outlook, durability, and less damage to the nails than acrylic (Santra, 2019). Gel
extensions have been influencers' and celebrities' choices, contributing to their popularity in the
US and across the globe (Modor Intelligence, 2022). Most nail salons also love this technique
because it has a higher value; they can charge more for the service. Most consumers also love
long-lasting and time-saving products to reduce their visits to nail salons (Modor Intelligence,
2022). With hectic life schedules, consumers prefer innovative products that take much of their
time. Therefore, gel nails have grown more popular because they are long-lasting and time-
saving.
The growing health awareness of nail care benefits has further led to the increased
demand for manicure and pedicure services (Modor Intelligence, 2022). Consumers are willing
to get nail treatment and care treatments. Manufacturing companies and nail salons are taking
advantage of this opportunity by producing nail treatment and care products and offering them to
clients (Modor Intelligence, 2022). Healthy nail treatment and care treatment is no longer limited
to women alone, as men also embrace these services (Modor Intelligence, 2022). The demand for
nail products is anticipated to grow further as consumers grow.
There is also a growing demand and inclination towards natural, organic, and cruelty-free
products. Due to the growing awareness of the detrimental effects of harmful compounds in
beauty products, more customers are shifting their preference to brands whose products have
natural formulations. This has enhanced the demand for natural and organic products in recent
years. While most producing companies are launching cruel-free products, nail salons also
increase their purchase and use of natural and organic-made nail products. For instance, there has
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been a surge in demand for cruel free products from L. A Girl, 100% Pure, and Beauty Without
Cruelty (Santra, 2019). More nail paints are produced with reduced chemical components and
more natural contents.
Moreover, consumer spending on beauty and personal care products has risen recently.
Despite the economic downturn brought by the Covid-19 pandemic, the people in the US are still
consuming these services and purchasing beauty products (Modor Intelligence, 2022). With
recent innovations, consumers are also eager to try out to types of products. According to a
market survey completed by Grand View Research (2017), the demand for nail polish is
anticipated to grow due to increased purchases by women and teenagers who love designer nails.
The increasing number of people visiting salon nail art studios and salons is expected to impact
the demand for nail care products and services positively.
Nail extensions and art has become an essential component and trend among millennials.
Women have embraced nail beauty as part of their grooming, and this has inspired companies to
produce unique finishes such as sequins, metallic, magnetic, and glitters. The trend of men
getting nail arts and showing them off has also increased (Akinyoade, 2021). Men are rapidly
embracing manicures and pedicures (Akinyoade, 2021). Gone are the days when beauty services
were gender-stereotyped and rendered a strictly women's affair. Although men wearing nail
polish is not a new phenomenon, the trend is now very popular. The recent rise of metrosexuality
and gender fluidity has sent many men to nail salons to shrug off the stigma and polish their nails
(Akinyoade, 2021). The rapid rise of 'manicures' will increase the demand for nail care and
treatment services and products.

Key Direct and Indirect Competitors

Sola Salon
The Sola Salon Studios is a franchise salon with two locations in Myrtle Beach that offers
independent contrators, salon professionals, and other beauty business consultsnts work as a
collective to provide services to clients. Depending on the technicain’s field of practice, Sola
Salon professionals offer a wide range of services such as; manicures, gel nails, acrylics, waxing,
and Dip Nails. Also offers face waxing, lip treatments, brow lamentation, Lash and Brow Tinting
lash extensions, and lash lifts. The mission of Sola Salon is to offer quality services to their
clients using eco-friendly products to protect the planet and the health of their staff and clients
(Yelp, 2022). This nail salon has been in operation for several years, hence has a loyal customer
base and enough revenue to diversify its operations (Yelp, 2022). It is also considered one of the
trendiest salons in Myrtle Beach and a popular destination.Sola Salon Studios poses a great
threat to Kreations Trade Market, seeking to penetrate a market with the exact same notion to
have a collect group of contractors; that has such an established business. The friendly and
trendy atmosphere renders the Sola Salon Studio quite competitive.
S1 Nail Spa
S1 Nail Spa is a nail salon in Myrtle Beach. This nail salon also delivers quality
manicures, pedicures, gel colors, and waxing services. It has well-trained nail technicians who
attend to the clients and ensure the environment and equipment are cleaned and disinfected. The
staff at S1 Nail Spa have been trained to follow the sanitization protocol. The prices at this salon
range from $4 for simple services like nail repair to $80 for other manicure and pedicure
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services. Wax treatments offered include Lip wax, face wax, chin wax, eyebrows wax, brows
tinting, and cluster eyelashes. Lashes costs start at $45 for cluster eyelashes, and the cheapest
waxing treatment is Lip wax, which costs $10 (S1Nailspa). These are affordable enough to
attract a large number of customers.
Elite Design Nails and Spa
Elite Design Nails and Spa is a nails salon and spa offering high-quality services using a
well-trained team of professionals. The wonderfully warm atmosphere at the entrance allows
clients to relax when awaiting their services (Elite Design Nails & Spa). Elite also offers both
modern and traditional nail services while ensuring they give their clients memorable
experiences (Elite Design Nails & Spa). The nail salon also ensures to be up to date with the nail
designs and skills and uses the best products in the market to meet customers' standards. The
services offered at this nail salon and spa include manicure and pedicure services, gel services,
acrylic services, color change, wax services, and other services such as cuticle trimming, French
and colored tips, and paraffin on hands and feet. The prices offered at Elite Design Nail and Spa
range from $5 for deigning two nails on feet to $60 for a “Elite” pedicure (Elite Design Nails &
Spa). All the services at this salon are affordable. Its strategic location at the heart of Myrtle
Beach on 38th Avenue attracts more customers to its quality and affordable prices (Elite Design
Nails & Spa). Elite Design Nails and Spa poses great competition to Kreations Trade Market,
which is yet to be established in downtown Myrtle Beach. Establishing a nail salon in this region
requires strong competitive advantages to penetrate the market. Elite is an already established
brand with a loyal customer base. Attracting these customers to Kreations Trade Market will
require investing in quality and uniqueness.

Competitive Analysis of Kreations Trade Market in the market

An analysis of the competitiveness of Kreations Trade Market gives a clear picture of the
position of the business in the market. Business strategists have to understand the company's
position to gauge whether further amendments are needed to overcome the threats and exploit
opportunities.
Kreations Trade Market SWOT analysis
Strengths
 One of the key strengths of Kreations Trade Market is its workforce team. The team that
will work for Kreations Trade Market are experienced, professional Vietnamese women
who have the skills needed to offer quality services to clients. This is a team that will give
customers value and quality for their money.
 Kreations Trade Market will also be established as a high-traffic tourist destination,
enabling it to attract these visitors as its key clients. Tourists are willing to pay for
luxurious activities and services. Therefore, situating the business in a position where
tourists can easily access it will attract loads of customers from the first day of its grand
opening.
 Kreations Trade Market's adoption of the ethnic niche will attract customers, especially
tourists who would represent particular cultures through nail arts and designs. This
business aims to give customers a mixture of modernity and tradition, which will also
attract customers.
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 Further, incorporating organic services and products will lure customers worried about
the chemical composition of the other nail care and treatment products. With the recent
trend of customers preferring organic and less harmful products, more customers will
flock in to get these products and services that utilize these products.
 Although Kreations Trade Markets' services are geared to adults, kids will also be able to
get nail care and treatment services from this salon. This will allow customers to visit the
salon as a family as the services will be rendered to men, women, and children.
 Kreations Trade Market will adopt various marketing strategies to inform and attract
clients to visit the salon. Adopting marketing strategies such as digital, social media, and
word of mouth will increase awareness among the target population and convince them to
visit the new place.
 Kreations Trade Market will also offer affordable prices to compete favorably. First-time
customers will be given a 15% discount to motivate them to return.
 The nail industry is booming and will continue growing in response to the constant
increase in the population. As the population increase in the US and across the globe, it
creates a larger market for nail salons. Therefore, venturing into this sector promises
greater returns.
Weaknesses
 The scope of business is limited to nail care and treatments only. While other salons have
incorporated beauty and personal care services in their nail salons, Kreations Trade
Market deals exclusively with nails. However, although the scope of this business is
limited, it can expand in the future to incorporate other services.
 As a new business venture into a market with other beauty salons, it might take some
time for it to penetrate the market. The business has to market its services and products
and offer deals that will lure customers.
 The beauty industry is ever-evolving, with new trends and technological advancements
emerging. Kreations Trade Market has to change occasionally as the changes emerge to
keep up to date and retain its clients, which can be very costly.
Opportunities
 Despite the competition in the nail industry in Myrtle Beach’s downtown area, there is
still an opportunity for Kreations Trade Market to penetrate the market. The business has
a chance of being the leading nail services and products provider.
 Kreations Trade Market also has an opportunity to adopt the latest technology in
delivering manicure and pedicure services. With the advancing technology, various
techniques and tools have emerged to offer quality services.
 The growing trend of men getting manicures and nail art opens an opportunity for
Kreations Trade Market to offer nail care and treatments tailored to men's needs and
preferences.
Threats
 The stiff competition in Myrtle Beach threatens the growth of Kreations Trade Market.
There are numerous luxurious nail salons and other beauty services that offer similar
services and products that Kreations Trade Market will be offering. Therefore, this new
venture has to invest in marketing, delivering uniqueness and quality to the customers.
 14

 Unsatisfied employees can leave the salon with clients. When the working environment is
not favorable for the clientele, they can leave Kreations Trade Market with clients and
refer them to new salons they will be working with. Therefore, the salon has to ensure
they know their employees' goals and expectations to create a favorable working
environment for them to attract and retain more clients.
External Factors That May Affect the Start-up and Operation of Kreations Trade Market
Political
 Kreations Trade Market is a business whose main market target is tourists. However, this
can change if the government decides to impose regulations that may bar the movement
of tourists to this region. A good example is the Covid-19 pandemic that led to flights
being suspended. The tourism industry collapsed, which means that businesses highly
dependent on tourists collapsed. In case of imposition of similar regulations in the future,
Kreations Trade Market will suffer a great deal or be forced to change its main target
market. Conversely, the government and associated tourism sector can make the United
States appealing to tourists by imposing regulations that promote safe stay for tourists.
Similarly, government funding of tourism projects, particularly in Myrtle Beach
downtown, can increase traffic in the region, thus creating a bigger market for Kreations
Trade Market.
 Political instability in the United States can also interfere with the high-traffic Myrtle
Beach as tourists will be scared to travel into the country.
 Kreations Trade Market has to respect the standards and regulations established by the
US Personal Care Product Safety Act. The salon can only use products approved by the
Federal Food, Drug, and Cosmetic Act (FDA) which regulates the products sold in the
US market.
Economic
 Economic crises or downturns will impact the operation of Kreations Trade Market
significantly. For instance, during the 2008-2009 economic crash, a section of the beauty
industry was hurt significantly, with the hair salons being the least affected. Salons
experience declined revenue generation as most customers were not willing to pay for
any add-on services. Nevertheless, regardless of how tough the economy is, people will
always go to salons. Salons always survive economic downturns, but revenue generation
can drop during such economic times.
 The economic recovery post-pandemic will positively impact Kreations Trade Market.
More individuals will have disposable income to spend on nail care and services.
Therefore, Kreations Trade Market start-up is more likely to be successful.
Social
 Customers tend to develop brand loyalties when they find the products that fit their needs
and preferences. Dozens of brands in the beauty industry and particularly the nail sector
offer the same products and services. Customers will always try this assortment of
services and products until they find the most suitable one. After that, they stop looking
and settle on particular brands. Therefore, nail salons have to align their goods and
services with the preferences of these clients. Kreations Trade Market will have to offer
what clients love.
 15

 Social media has created a platform where society follows the latest styles and trends.
The social media platforms also inform salons how to adjust appropriately to be on par
with the latest fashion. Staying behind the trends can hurt the progress of any beauty
salon significantly.
 Changes in customers' lifestyles can also significantly affect the operation of Kreations
Trade Market. Identifying any changes in customers' behavior is vital as it enables a salon
to deliver what the customer wants. Failure to recognize these changes can make any
salon lose its clients.
Technological
 Changes in technology continue to introduce new trends in the nail salons industry.
Trends in nail designs, pedicures, and manicures, are possibly a result of advancements in
technology. Therefore, nail salons have to be up to date with the new technologically
improved products and equipment.
 Nail technician to customer experience has also been changed with the advancement of
the internet. Customers can leave their reviews about their experience on online
platforms, which can help nail technicians understand whether they deliver their
expectations.
 The internet has also created a platform where salons can sell their products and allow
clients to book their salon services. This will allow Kreations Trade Market to offer its
nail care and treatment products online, sell its brand to customers and allow clients to
make their online bookings, thus attaining on-demand service delivery. Nail salons can
now send images of their work on the internet to be viewed by clients, which does not
cost them any money. Therefore, in this sense, technology will ease and smoothen the
operations of Kreations Trade Market if adopted appropriately.
Legal
 Kreations Trade Market has to meet all registration and licensing requirements
established by the state before commencing its operation. Failure to follow the right
procedure for registration and licensing may lead to litigation.
 The salon also has to operate with licensed nail technicians. Customers must get services
from well-trained and legally verified nail technicians.
Environmental
 The growing awareness of global warming and the campaign against environmental
harming products and services can affect Kreations Trade Market significantly. The nail
salon should consider embracing biodegradable or organic products to minimize pollution
of the environment. Using non-toxic nails and environmentally friendly gel, nail polish,
and other products will show clients the business' good motif to protect the environment
while ensuring quality service delivery.
 Proper disposal of wastes products is also required in every state to prevent
environmental population.
 Kreations Trade Market must ensure proper disposal of its waste to keep its environment
clean.
 16

Demographics of the Kreations Trade Market Market

Kreations Trade Market will target the consumers and visitors of Myrtle Beach South
Carolina. The nail salon majorly targets tourists who visit Myrtle Beach and take a tour of it
many attractions. According to source conducted by MSN.com/travel, there are 19 million
tourists who visit Myrtle Beach that are fifty years or older, with the dominant group being the
baby boomers (Myrtle Beach Area Fast Facts | Visit Myrtle Beach). Those in their 40s also make
up a significant population of tourists visiting this destination. These tourists spent an
averageMyrtle Beach Area Fast Facts | Visit Myrtle Beach of $228 per adult every day locally
(Myrtle Beach Area Fast Facts | Visit Myrtle Beach). Myrtle Beach is a popular spot for both
locals and tourists. Therefore, Kreations Trade Market will also target the locals visiting the
market for their shopping. According to the demographic survey, Myrtle Beach constitutes more
than 9,018 residents with a median age of 30 years. The majority of the population are females
(56.7), with males making 43.28% of the population. 93.81% of this population are employed in
white-collar jobs, which increases their likelihood of having more disposable income. The
median household income in Myrtle Beach is $79,539, while the average annual income of every
household is $162,948 per year. The median salary of those between 25 and 44 years old is
$77,702, while those aged between 45 and 64 earn $130,750. Those older than 65 and younger
than 25 earn $8,6833 and $9,583, respectively. Therefore, the population with more disposable
income to frequent nail salons constitutes those aged between 25 and 64.
Customer Analysis
Kreations Trade Market will majorly target adults between the ages of 20 and 65. This
population is likely to get nail care and treatment services and be willing to pay a fortune for
quality services. This working-class population in Myrtle Beach would like to augment their
elegance with nail arts and designs. The population has luxury money on hand, and their
professional lifestyles require them to be smart and presentable. Furthermore, after a long day's
work, this population, particularly women, are likely to look for pedicure and manicure services
in the evenings and during the weekends. The population is more likely to return for more
services to change color or acquire new designs to maintain their stylish looks. Therefore, once
Kreations Trade Market attracts this working-class population, it should be assured of repeat
customers as long as it delivers quality care services. Kreations Trade Market 's major target
population, the tourists, are also more likely to get pedicure and manicure services from the salon
because it offers both a sense of tradition and modernity. Most tourists travel to explore and
appreciate different cultures and traditions across the globe. The sceneries reflect the people's
traditions in the locality, both current and past generations. Therefore, incorporation of that sense
of culture in nail artworks will contribute to their satisfaction of their appetite for exploration of
traditions. Based on the above demographic survey of the tourists, the average age of tourists in
Myrtle Beach are in their 20s to 40s. This population is health-conscious and would love
pedicure and manicure services that embrace products with low chemical content. In addition to
incorporating culture in nail artworks, Kreations Trade Market has organic pedicures and
manicures on its service list. These tourists can pay for luxurious organic services in the town as
long as they are satisfied. Moreover, Most tourists travel with their families. Therefore, creating
an environment where an entire family can get services and products, which Kreations Trade
Market offers, will suit this population. Hence, Kreations Trade Market will target tourists of all
ages, from 16 to 65, that visit Myrtle Beach. Additionally, with the rise of men getting nail
polishes, Kreations Trade Market will also target the population. Most men love stylish and
healthy lifestyles. However, they would not love to get services from the same salon as women.
 17

Kreations Trade Market will create a separate section where men would be getting their
manicure and pedicure services. Since men love an environment where they can interact with
fellow men and openly discuss sports, the stock market, or politics, Kreations Trade Market will
create such as setting with newspapers and TV situated in their section.

Operations Strategy
Businesses depend on an effective decision-making process to meet their short-term and
long-term goals. Companies develop operation strategies that align with their vision and mission
to ensure they attain stipulated goals. Operation strategy encompasses collective actions that the
company mandates or stimulates binding policies, programs, systems, and decisions to achieve
competitive advantage (Slack & Lewis, 2017). The beauty industry remains significantly
competitive and demanding, which forces companies and businesses to adopt various operation
strategies to reduce cost, penetrate the market, increase sales, gain competitive advantage, and
become sustainable. For instance, reducing costs during material acquisition, manufacturing or
production, and the product delivery is an essential phenomenon that enables the company to
utilize organizational infrastructure competently to serve consumers better. As companies'
primary goal entails providing quality service, generating sales, increasing profits, and becoming
sustainable in the industry, they develop an operational strategy that ensures these priorities.
Operation strategy encompasses various elements such as the company's approach of penetrating
the market, increasing visibility to ensure high sales, and reducing costs to ensure company
sustainability and competitive advantage (Burian & Maffei, 2014). As the nail salon industry in
South Carolina continues becoming more competitive, nail parlors are forced to evaluate their
operation strategies to reduce cost operations while still offering quality services that attract
customers and warrant high profits. This is an essential business element that allows firms to
remain sustainable irrespective of the fluctuating nature of the industry. Consequently, these
strategies will help Kreations Trade Market to forge a strong base in the salon industry and
attract numerous consumers. As it sells nail products and offers nail beauty services, it will
understand how to reduce operation costs, maintain efficacy, and generate high sales and profits.
Customer-Driven/Centric Operation Strategy
Customers are essential stakeholders in the nail salon industry, enabling businesses to
meet their profitability and sustainability goals. Nevertheless, customers' demands, needs, and
desires often fluctuate, hindering companies from satisfying these vital needs effectively. Nail
technicians strive to adopt an effective strategy to ensure efficiency, competitive advantage, and
sustainability in South Carolina, dominated by massive competition. To address the demands of
its consumers, a corporation employs customer-driven operational techniques. The customer-
centric operation model allows the company to strategically understand consumer needs and
demand, focus on those specific expectations, and deliver quality services without investing time
and monetary resources in unnecessary models and elements (Burian & Maffei, 2014). For
instance, consumer-driven strategies help companies spot changes in customer behavior, such as
a shift in purchase habits depending on demographics. This information may assist your business
in fast adapting to market changes, identifying dangers and taking actions to minimize them, and
using strengths to increase its skills and market advantage. Since customer needs are volatile and
change every time, businesses in the nail salon industry must develop consumer-centric
approaches to help them minimize the cost that they may incur when focusing on outdated
concepts and strategies (Slack & Lewis, 2017). Kreations Trade Market will invest in consumer-
based analytics to notice every change in consumer demands and purchasing behavior. It will
 18

adopt flexible business models and technology to comfortably embrace change and provide
quality services based on consumers' preferences and expectations. This helps businesses become
sustainable because they satisfy consumers and formulate a convenient platform to encourage
consumer advertising.
Corporate and Cross-Functional Based Operation Strategy
Companies work towards short-term objectives and long-term goals as they operate to
deliver products and services to the consumers. The internal organization and structure help
reduce the cost resulting from poor leadership, lack of stipulated shared vision, incompetence,
and poor delivery. The corporate strategy ensures that managers employ an effective leadership
approach that encourages and motivates employees to perform their tasks with minimal or no
supervision and achieve daily objectives (Burian & Maffei, 2014). Corporate strategy is an
overarching business plan that governs a firm's goal and vision and links each part of the
organization together (Barnes, 2012). It ensured cohesiveness and unity of purpose, which allows
the business to create value for its internal and external stakeholders. Consider the organization
as a system, with its diverse divisions acting as linked hubs and nodes that work together to
accomplish shared goals. As workers cooperate and work together, they become an efficient
system that allows a business the meet its goals (Slack & Lewis, 2017). For instance, the nail
salon industry requires cooperation and coordination to ensure creativity, accountability,
transparency, and excellent customer care services that would warrant satisfaction. A business
strategy helps a corporation accomplish its goals by establishing regulations and procedures that
apply to all departments. Having a corporate culture and a disciplined staff makes the company
become sustainable in a competitive industry because it invests its funds in productive operations
rather than waste it on staff management (Barnes, 2012). For instance, strong corporate culture
reduces employee turnover, which forces businesses to recruit new workers, spend money
training them, and waste valuable time catching up in speed and quality. Kreations Trade Market
will ensure an efficient corporate strategy to reduce the cost incurred due to incompetence or
poor management. This will save the business money and attract consumers that love the
organization because it will be able to create value due to shared goals and vision.
Competition Priority Strategy
Companies utilize competitive prioritization strategies to set themselves apart from their
rivals' brands, goods, services, and people. South Carolina has numerous nail technicians, which
offers significant competition for the few consumers. This will require Kreations Trade Market
to develop a comprehensive strategy to understand the competition and develops an approach to
remain profitable irrespective of the fierce competition. Integrating your marketing strategy,
manufacturing procedures, and company culture into the entire business plan (Slack & Lewis,
2017). Competitive priority strategies attempt to provide goods and services that can always suit
consumers' demands and preferences at a reasonable cost (Barnes, 2012). While nail
beautification remains a secondary need for many consumers, capturing consumers' attention and
ensuring their loyalty to a single brand helps a business to have high sales. Companies must
examine their operating expenditures and product development timelines to set successful
competitive priorities. Competitive strategy must align with the company's goals and objectives
to ensure a business competes appropriately while remitting sustainable growth. They must also
assess their offerings' features, quality, and advantages and add diversity and unique
characteristics that will assist their goods and services stand out from the competition (Burian &
 19

Maffei, 2014). This is important, especially for the young Kreations Trade Market, to formulate a
comprehensive plan to achieve objectives and be competitive.
Operational Processes
Kreations Trade Market will conduct its daily operations majorly on an appointment basis
due to the technicians being Independent Contactors. Customers will book online on the salon's
website or contact the salon through a phone call to get an appointment. This is meant to avoid
long queues at the salon. Clients who arrive at the salon before their appointments will not have
to make any bookings, but the available technicians will serve them. However, those clients that
call ahead will be given priority. Kreations Trade Market will hire more nail technicians if the
queues get longer. The firm intends to employ about three more nail technicians and two
assistants during festive seasons when more tourists visit Myrtle Beach, and residents get the
time and more reason to get manicure and pedicure services. Kreations Trade Market will offer
quality nail services and products to all customers without discrimination. Both locals and
foreigners will get the quality services they deserve and look for in the market. Clients queueing
at the waiting bay will engage themselves in watching television, reading magazines, and
drinking coffee or any other soft drink they will be offered. The waiting period will allow them
to review the list of services offered and the products sold at the counter.
Management Summary
Kreations Trade Market's management philosophy upholds respect for every employee
and client and requires the manager to respect their responsibility. The success of this salon
depends on the uniqueness and warmth that it will offer to its clients and a friendly environment
for employees to provide quality care to clients. The management team will comprise the owner
and the manager of the salon. This team will be responsible for hiring competent nail technicians
who will provide world-class services. In addition, there will be a receptionist who will welcome
all clients, receive complaints, and ensure clients are served progressively. The receptionist will
also sell the nail products during the waiting period in the first year of the salon's operation, but a
new attendant may be hired in the future if the demand for the services and products rises.
Segmentation, Targeting, and Positioning
Marketing segmentation remains an essential phenomenon for contemporary businesses
as it allows corporates and SMEs to cluster heterogeneous consumer characteristics into smaller
homogeneous groups (Camilleri, 2018). Kreations Trade Market will use segmentation,
targeting, and positioning to understand the consumers' needs, desires, and expectations to enable
them to customize their products to suit these needs. The company will use segmentation based
on behavioral, demographic, and psychographic characteristics. Kreations Trade Market will
evaluate the consumer demographic variables such as age, employment, income, and
socioeconomic standards. Since nail beautification tends to reflect an individual's social status, it
will boost the company's ability to ensure efficacy and satisfaction when it adheres to prospects'
demographic attributes. Additionally, psychographic segmentation entails developing goods and
services that can attract individuals based on the ability to coincide with the social class,
consumer's principles, values, interests, and lifestyle. Based on this segmentation, the company
will align its services to consumers that love the stylish and beautiful lifestyle, come from the
middle-upper class, easily embrace change and new fashion, and enjoy creative nail paintings. A
robust consumer segmentation provides an easy platform for a business to effectively increase its
consumer base irrespective of the diverse nature of consumers' demands. Therefore, as Kreations
Trade Market strives to penetrate the market, grouping the heterogeneous consumer
 20

characteristics into manageable homogeneous groups will help the business understand which
nail products satisfy its prospects and which one aligns with unique attributes. Consequently, the
company will position itself as an affordable and quality nail professional that revolutionizes the
industry with its creative artwork and unforgettable after-sales service.
Marketing Strategies
With the high competition in the nail salon industry, companies strive to develop
effective marketing strategies that would guarantee market penetration and enhanced sales.
Marketing strategy involves companies' approach to meeting prospective consumers to establish
a robust consumer base as they increase their visibility in the market (Kimberlee, 2018). Salon
businesses engage the consumers through different approaches by using appropriate
segmentation, targeting, and positioning techniques that warrant an understanding of the
customers' needs, desires, and expectations to customize their products to meet the required
threshold that would attract consumers (Kimberlee, 2018). Kreations Trade Market will utilize
the 4P framework that will avail its positioning in the market to enable the organization to
understand its ability to penetrate the market to deliver quality products and services that the
consumer needs. The 4P framework denotes specific elements such as products, place, price, and
promotion, which allows a company to enhance its visibility, accessibility, and reliability in the
market (King, 2018). This marketing mix provides an overview for the company to comprehend
the market trend and know which elements it can adopt and approaches it can change to ensure
the business generates high sales and profits and remains sustainable. As a new business,
Kreations Trade Market will use the 4Ps to evaluate its efficacy in the highly competitive
markets and comprehend areas that require immediate changes. This will prompt the company to
gain a competitive advantage over its rivals and formulate a sustainable business formula that
will guarantee high sales and increased profits. Therefore, the marketing mix section will
highlight an effective marketing mix strategy that Kreations Trade Market will adopt to ensure it
penetrates the market, reach many customers, generate sales and profits, and remain sustainable
in the highly competitive and evolving market.
Kreations Trade Market Marketing Mix (4Ps)
Product
Company products and services are the foundation that enables businesses to become
firm in penetrating the market and reaching the consumers. Nail salons strive to establish
products and services that the market needs to enable them to attract many consumers.
According to Borden (1984), providing goods and services that customers need is essential for
business sales generation and profitability, and sustainability. Kreations Trade Market will focus
on offering nail beauty services such as manicures and pedicures. These are significantly popular
services that allow the business to do skin treatment and cuticle toning based on individual needs
and desires. Kreations Trade Market will focus on providing different manicures and pedicure
nail arts through utmost creativity that will significantly attract consumers and give the company
a competitive advantage. For instance, it will conduct acrylic extensions and overlays, nail
wraps, stickers, and decals, nail polish, and nail gel and shellac. Having a variety of product in a
business portfolio enable the company to attract different clients with varying tastes. It gives the
customer the platform to make an autonomous decision about unique products and services that
suit their personality, social class, and budgeting range. Kreations Trade Market brand will relate
its product and services to quality, sophistication, and class to give customers different allure.
Since customers are often disappointed by the limited options that nail salons offer, the Kreations
 21

Trade Market will continue expanding its product and service portfolio to suit fluctuating
customer needs and contemporary market demands. Therefore, maintaining a broad product
portfolio characterized by quality consumer-centered elements helps boost brand image and
generate profitability.
Price
Affordability of products and services is essential in attracting quality consumers. With
many businesses in the salon industry offering similar products and services, adopting a fair and
reasonable pricing strategy can give an SME a competitive advantage. An effective pricing
strategy allows a business to offer low or average pricing for the products while remaining
feasible to make profits. There is a variety of pricing strategies like competitive and premium
pricing, which allows companies to generate high profits while maintaining consumer loyalty
and traffic flow. According to Borden (1984), companies must assess the consumers' purchasing
power to understand which pricing strategy they can adopt to guarantee substantial profit and
maintain product sales traffic. Kreations Trade Market will adopt a competitive market pricing
strategy that allows consumers to acquire its products and services based on market rates and
relatively lower prices. This marketing strategy allows customers to pay lower and average rates
to acquire quality nail services. Compared to premium pricing that empowers companies to set
their prices high for the specific executive market, a competitive pricing strategy eliminates the
pricing discrimination element allowing clientele from different socio-economic groups to access
the services. Kreations Trade Market will adopt this pricing strategy to ensure high sustainable
profitability due to the high demand for quality but relatively cheaper nail services. Therefore, as
the business associates its mission and vision with affordability and quality, establishing an
affordable pricing range for all its products and services becomes a crucial platform for
promoting that vision and gaining consumer loyalty.
Place
Strategic location is crucial for businesses in attracting prospects in the market.
Customers tend to purchase from local vendors that they frequently see, and they remember their
brand image. With many companies available in the nail industry and nail services are a
secondary requirement for many customers, locating the business strategy is vital to attracting
customers. Since consumers can only understand or realize the affordability and quality of
products and services a company offers after associating with them, businesses must invest in
strategically locating their stores and premises to allow customers to see and visit such operation
premises (Al Karim & Habiba, 2020). As a secondary requirement, salons try to locate their
stores in cities and towns crowded with tarted prospects with the financial capability to engage
such beauty services. Major towns in South Carolina are full of people of different classes that
often lack time to research new beauty parlors or nail technicians in town. This makes it
important for Kreations Trade Market to penetrate this market by establishing or leasing stores at
strategic positions. Kreations Trade Market will distribute its stores in different strategic
locations within the city where the target market can easily see the brand image and record it in
their mind. This increases the chances of prospects visiting the shops for nail services. Moreover,
since prospects and consumers love convenience, Kreations Trade Market will make their stores
accessible to allow customers to visit them at their convenient time, such as during lunch break,
to get their nails done within the shortest time possible. This is an effective way to capture
customers' attention and increase their affinity and attachment to a singular brand.
 22

Promotion
Although brick-and-mortar stores effectively capture consumers' attention, businesses
must consistently invest in advertising and promoting products and services to expand their
market penetration rate and customer base. Promotion actively determines the success rate as it
helps to spread the news about operationalization, existence, and valuable products and services
a business offers. According to Criag and Shimp (2017), advertising and promotion strategies
create awareness about the products and services and help enhance brand recognition with
numerous competing forces because it exposes the company to a broader market and customer
base. Moreover, as society evolves into the information and technology era, companies use
different online platforms like the company website and social media platforms to promote their
products and services (Al Karim & Habiba, 2020). Kreations Trade Market will focus on direct
marketing, online marketing, social media marketing, word of mouth, and promoting service
discounts. For instance, it will use social media platforms like Facebook, Instagram, Twitter, and
YouTube to advertise its nail products and services to capture clients. Since these platforms have
millions of subscribers that meet the prospect threshold the company targets, they offer a great
platform for the company to increase awareness and penetrate the market. Moreover, these
platforms are also free and will enable Kreations Trade Market to effectively each many
customers without straining to pay for advertising which reduces operating costs. Word of mouth
will enable customers to praise the nail service Kreations Trade Market offers and refer friends
and relatives to the shops. This helps the company increase its consumer base, enhance sales and
profitability, and gain sustainability in the competitive industry. Therefore, a promotion strategy
empowers a business to broaden its customer base by reaching millions of target prospects.

Understanding Kreations Trade Market Marketing Strategy through Aaker's Brand

Identity Model
Businesses require a strong brand image and identity to help them easily penetrate the
market and attract consumers. David Aaker developed a brand strategy encompassing eight
elements, denoting that these building initiatives help companies penetrate the developed and
emerging markets (Mohan & Sequeira, 2009). For instance, Aaker ascertained that products,
logo, name, color, slogan and message, sound, position, packaging, and experience are crucial
parts of brand identity and image that help companies and businesses to define their position in
the market and influence how consumers perceive them (Mohan F Sequeira, 2009). The nail
beauty industry significantly relies on a strong brand image that captures customers' attention
and influences purchasing behavior to help gain competitive advantage and sustainable
advancement. Kreations Trade Market will strive to develop an elusive brand image in the
market and establish an attractive brand logo and color that resonates with the target market as it
associates itself with exclusive quality and great experience. A brand image implies the
principles and values that a business advocates or stands for and the promise it communicates to
the customers (Mohan an&d Sequeira, 2009). Brand identity hep forms a cohesive relationship
between a business and the consumer by establishing a value proposition encompassing self-
expressive, emotional, and functional benefits (Mohan & Sequeira, 2009). For Example, Nail
technicians not only identify themselves with the skills they provide to consumers but also focus
on building strong, cohesive, and distinctive relationships with customers. This drives them to
establish value and communicate professional ethicality to attract more customers and make
them loyal to the business. As Kreations Trade Market strives to succeed in the highly
competitive industry, it must forge an exclusive brand identity through its services, the symbol it
 23

portrays, relationship with customers, and organizational culture to gain competitive advantage
and sustainability in the nail industry.

Financials
Financial Projections
The key revenue driver for Kreations Trade Market will be services offered by the nail
technicians. The revenue will be generated from pedicures, manicures, gel nails, and other nail
arts and designs. The salon will generate approximately $300,000 from the nail salon services
and products offered to the customers in the first year. In order to achieve this revenue
projection, Kreations Trade Market has to serve at least 20 customers per day on an average
ticket price of $45. This means that Kreations Trade Market will generate an average of $900 per
day,27,000 per month, and 324,000 during the year, assuming it will operate every day,
including holidays and weekends. It is also projected that Kreations Trade Market will
experience at least a 25% increase in its revenue for the second and third financial years and a
30% increase for the fourth and fifth financial years. The key cost drivers of Kreations Tade
Market will be gel nail polish, nail polish, seats, tables, towels, dip powder, acrylic, nail
extensions and stickers, pedicure, and manicure materials like scrubs and nail equipment such as
filing set and clippers. Other nail treatments sold at this nail salon also drive Kreations Trade
Market's costs. Other costs include leasing, salaries, and utilities. The financial projections for
Kreations Trade Market are based on various assumptions. In addition to the average ticket of
$45 and serving about 20 customers a day, it is assumed that no losses will be incurred in the
first and the preceding years of its operation. Also, Kreations Trade Market will operate on a
commission model with the percentages varying based on the revenue generated. More than 50%
of the revenues will be plowed back into the business to cover the expenses and grow the
business. Assuming the salon generates the estimated $320,000 in the first financial year, the
total amount to be paid to nail technicians will be $120,000. The amount will, however, increase
in the following financial years. Additionally, it is assumed that although there will be issues
with the reporting of the revenue generated each day, the manager will always be present to
ensure everything runs smoothly and all payments are recorded correctly. The other assumption
is that Kreations Trade Market's revenue will grow annually, and new clients will always come
to the salon. The estimates indicate the normal-case scenario of a nail salon start-up, with the
first few months expected to generate lower revenue. The last assumption is that product sales
will not make a major part of the revenue. It is estimated that the revenue generated from product
sales will be about $800 per month, but it is anticipated to grow over the years.
Funding Requirements
Funding remains a crucial element in business operationalization because it enables
stakeholders to facilitate products acquisition and efficient service processing. Kreations Trade
Market will require $200,000 in debt to finance the salon's opening in Myrtle Beach. This
funding will cater to the opening inventory, working capital, leasehold, and salon designs. The
breakdown is illustrated below.
Working capital $50,000
Opening inventory $50,000
Salon design and equipment $80,000
 24

Leasehold and Terms Aggreement $20,000

An illustration of a projected income statement and subsequent balance sheet are shown below.
See appendix for projected revenue growth chart.
Income Statement
FY1 FY2 FY3 FY4 FY5
Revenue
Total $332,000 $394,000 $500,000 $654,000 $852,000
Revenue from
services and
products
Expenses
and costs
Lease $45,000 $45,000 $45,000 $50,000 $50,000
Licensing and $1000 $0 $0 $0 $0
registration
Inventory $20,000 $40,000 $55,000 $65,000 $100,000
Marketing $10,000 $10,000 $8,000 $8,000 $8,000
Salaries $120,000 $120,000 $200,000 $280,000 $300,000
Total Costs $196,000 $235,000 $308,000 $403,000 $458,000
and
Expenditures
EBITDA $136,000 159,000 $192,000 $251,000 $394,000
Depreciation $20,000 $20,000 $20,000 $20,000 $20,000
EBIT $116,000 $139,000 $172,000 $231,000 $374,000
Interest $20,000 $18,150 $16,500 $15,500 $14,000
Pretax Income $96,000 $120,850 $155,000 $185,500 $360,000
Income tax $6,000 $13,500 $23,250 $27,825 $54,000
Net $90,000 $97,350 $131,750 $157,675 $306,000
Income

Balance Sheet
FY1 FY2 FY3 FY4 FY5
Assets
Cash $81,500 $109,850 $133,250 $158,500 $268,000
Accounts $0 $0 $0 $0 $0
receivable
Inventory $20,000 $40,000 $55,000 $65,000 $100,000
Total current $101,500 $149,850 $188,250 $223,550 $368,000
assets

Fixed assets $88,500 $88,500 $88,500 $88,500 $88,500

Depreciation ($20,000) ($40,000) ($60,000) ($80,000) ($100,000)
Net fixed $100,500 $68,500 $48,500 $28,500 $8,500
 25

Assets

Total $190,000 $198,350 $216,750 $232,050 $356,500

Assets
Liabilities
and Equity
Debt $100,000 $75,000 $50,000 $25,000 $0
Accounts $0 $26,000 $35,000 $49,375 $50,500
payable
Total $100,000 $101,000 $85,000 $74,375 $50,500
liability
Retained $90,000 $97,350 $131,750 $157,675 $306,000
earnings
Total equity $90,000 $97,350 $131,750 $157,675 $306,000
Total $190,000 $198,350 $216,750 $232,050 $356,500
Liabilities
and Equity

Financial Risk Assessment and Risk management Strategies

Whether established or a start-up, every business is subject to various risks throughout its
period of operation. The degree of uncertainty, however, varies from business to business. It is
vital to measure the risks a start-up may encounter to weigh whether it is worth the investment.
The reasons for financial risks include high debt, highly vulnerable investments, and inadequate
cash flow management (Noor & Abdalla, 2014). The risk assessment of Kreations Trade Market
will allow investors and creditors to measure the potential of the start-up to penetrate the market
and sustain the competitive environment. A risk assessment will also help protect the workers
and customers from potential harm. Below is a risk assessment for Kreations Trade Market.
Liquidity Risk
Liquidity risks refer to the losses incurred due to the inability to meet short-term
obligations within the required duration (Noor & Abdalla, 2014). Every organization must ensure
that it has enough cash flow to pay its debts, failure to which may risk the business's success. A
company can have enough equity but at a high risk of failing to meet its short-term obligations
due to poor cash flow management (Noor & Abdalla, 2014). A company should be able to
convert its current assets in case additional cash is required to meet its obligations and sustain
normal business operations (Noor & Abdalla, 2014). If a company lacks easily convertible
assets, it faces high liquidity risk. Kreations Trade Market relies on debt funding, exposing it to
liquidity risk. Nevertheless, the income projection of this salon shows that Kreations Trade
Market's net income will be able to sustain its operation and pay its debt installments of $25,000
every year. The current ratio, calculated by dividing the current assets by current liabilities, helps
establish a company's liquidity (Noor & Abdalla, 2014). Based on the financial projections,
Kreations Trade Market's current ratio for the first year is 1.015 (total current assets divided by
total liabilities). The projected current assets are more than the liabilities throughout the years,
indicating that Kreations Trade Market is in a position to meet its short-term obligations using its
current assets. Management of liquidity risk requires a company to make the appropriate
projections of its current assets to ensure it will be in a position to meet its obligations.
 26

Market Risks
Market risk refers to the hazards that may arise due to the changing conditions in the
marketplace in which a business operates (Voronova, 2012). This can include changes in
exchange rates, interest rates, commodity prices, stock prices, and consumers' purchasing
behavior (Voronova, 2012). Market risks depend on the type of business a firm operates.
Kreations Trade Market is exposed to few market risks considering its domestic operation and
nature of business. An example of a market risk that the salon will face is the changing consumer
purchasing behavior. A significant number of customers have shifted their purchasing from
traditional stores to online vendors. Businesses that have adopted online selling of products have
managed to sustain the market change. Kreations Trade Market is majorly a service rendering
business, but it offers nail care and treatment products, which requires it to embrace online
selling. The shift in demand for nail services and products can also affect Kreations Trade
Market significantly. For instance, if the demand for particular nail products and services drops,
Kreations Trade Market will have to restock to meet the new market demands, impairing the
salon's positive cash flow. Kreations Trade Market has to forecast the demand for the nail
products to avoid acquiring products that may not sell. The market risks in the nail salon sector
are manageable, and Kreations Trade Market will be able to handle them efficiently.
Operational Risk
Operational risk arises from failures within the internal processes (Voronova, 2012).
Operational risk can arise from technical failures, human errors, or mismanagement (Voronova,
2012). The occurrence of operational risks impacts a firm's financial position significantly. For
instance, in case of fraudulent activity, a business loses a substantial amount of money,
negatively affecting the cash flow. Most operational risks are not foreseen, which is the reason
why they leave momentous losses in the company. Kreations Trade Market is also likely to
experience operational risk, though not with the same magnitude as that experienced by
established brands in the market. Some of the operational risks that Kreations Trade Market may
experience include technical failures in the payment system, business interruption due to various
concerns such as absenteeism of nail technicians, and accidents that may lead to loss of vital
equipment and products. These factors are likely to interfere with the operation of the nail salon
in case of their occurrence. A payment failure will risk the loss of funds through theft and
interrupt normal operations, leading to delay or loss of potential clients. Nevertheless,
operational risks are within an organization's control. After identifying the potential operational
risks, Kreations Trade Market has to implement risk management strategies. Operational risks
can be avoided, reduced, or transferred to the insurance company. Since some operational risks
may not be identified but occur unexpectedly, an organization such as Kreations Trade Market
needs to keep a history log of the failures to adopt appropriate measures.
Credit Risk
Credit risk arises when debtors fail to fulfill their financial obligations (Noor & Abdalla,
2014). Financial institutions such as banks are the most affected by this risk (Noor & Abdalla,
2014). However, other firms can also suffer credit risk if clients who get products and services
on credit fail to pay their debts. Credit risks can bring down a business. Failure to pay debts can
lead a firm to insolvency, resulting in its closure. However, the financial projection of Kreations
Trade Market shows that the business will not be experiencing credit risk. The salon will not be
expecting accounts receivables in the next five years of its operation. This can, however, only be
 27

achieved if Kreations Trade Market does not offer services and products on credit. As a start-up,
it should avoid such risk by offering services on a cash basis only.
Other Risks
Health Hazards
Nail technicians are exposed to chemicals and other substances that are harmful to their
health. The glues, removers, polishes, gels, acrylics, and other nail products contain harmful
chemicals that may negatively affect the health of the nail technicians and clients. Long-term
exposure to the health hazards may lead to respiratory illnesses, liver diseases, skin disorders,
and even cancers (United States Department of Labor). The chemicals substances found in nail
products include methacrylate compound, formaldehyde, and toluene (United States Department
of Labor). Lack of the right precautions can cause a myriad of health problems. Furthermore,
these nail technicians experience muscle strains from working their bodies in awkward positions
throughout the day (United States Department of Labor). Repeatedly working in these positions
can cause pains and body aches. Nail technicians need to use adjustable chairs and take the right
postures to avoid ergonomic hazards. The nail salon should also be keen to purchase products
with the least chemical components to protect its workforce. The manager should also know all
the effects of the nail products and avoid those that may cause more severe health effects (United
States Department of Labor). Moreover, nail technicians can be exposed to biological risks if
they contact infected nails, skin, or even blood when offering services to clients (United States
Department of Labor). They can also be exposed to fungal diseases of the feet and nails if they
touch infected equipment or clients' infected skin and nails (United States Department of Labor).
Therefore, Kreations Trade Market must purchase gloves and ensure workers wear them
whenever they attend to clients to prevent their exposure to biological infections. Good hygiene
and cleanliness should also be upheld, ensuring all equipment is cleaned and disinfected (United
States Department of Labor). Although health hazards affect individuals, when workers are
injured or get infections at the workplace, a firm risks losing a talented worker. Serious cases
may lead to litigation, damaging the salon's reputation, thus resulting in loss of clients.
Therefore, any harm to the workers affects the business's financial position, which requires the
salon to adopt effective protective measures. Kreations Trade Market should focus on generating
profits, protecting the workers, and ensuring they continue to offer quality services to the
customers.

Management Team Problems/Solutions

Small businesses, including salons, face many challenges, and the inability to find their
solutions can lead to their failure. The success of these businesses is not only fundamental to the
owners and employees but also to the US economy as a whole. Dalby and Kaska (2004) noted
that managers must identify the challenges their businesses might encounter and find potential
resolutions to ensure their sustainability in the market. As a new venture, Kreations Trade
Market must also note the major management challenges that its business might encounter and
find solutions to ensure its success in the market. Some of the management problems this salon
may encounter are elaborated on below.
Management Problems That
Kreations Trade Market May Encounter And Their Potential Solutions
Poor Teamwork
 28

Poor teamwork may arise among the management team, impeding the success and
growth of Kreations Trade Market. Poor teamwork within a management team arises when
conflicts of interest arise (Khan & Al Mashikhi, 2017). Every team member may opt to pursue
their strategy without the rest of the team, which can be chaotic and result in the failure of the
business (Khan & Al Mashikhi, 2017). The management is a pillar in an organization, and any
challenges within the management team can only lead to business closure. Moreover, poor
teamwork between the management and the employees and within the workforce can also be
critical. Employees and the management may not be pursuing the same agenda, and the
workforce may also fail to be united in pursuing a salon's goals and objectives. Any division in
the business risks the failure of Kreations Trade Market even before its commencement. An
organization without teamwork cannot compete and keep pace with companies whose employees
and management work as a team (Khan & Al Mashikhi, 2017). Kreations Trade Market has to
build a team that pursues similar goals and objectives to ensure the business's prosperity.
Employees and the management should agree on the strategies to employ to ensure the efficient
operation of the business. It is important to have a diverse workforce and management team with
different mindsets. However, while everyone should be allowed to give their opinions, they
should all be geared towards a common goal. No manager or employee should take their path,
but instead, work together towards ensuring the business' prosperity. Therefore, the management
should set an example by defining goals and strategies as a team and lead the rest in attaining
success in the new market. The management needs to foster good relationships among the newly
recruited employees to enable them to work as a team.
Poor Performance
Poor performance is one of the biggest challenges the management team faces when
starting a business, especially in the first year of operation (Le Trinh, 2019). Although some
businesses start successfully with large sales in the early years of their operation, it is not
guaranteed that Kreations Trade Market will perform as per the management's expectations. One
of the key factors that lead to poor performance of start-ups is early scaling up (Le Trinh, 2019).
Getting a few clients in the first month of operation does not mean that the business has gained
traction in the market. The management has to strengthen its promotional strategies to penetrate
the market. Kreations Trade Market should start early with its marketing, employing different
approaches to ensure that it reaches its potential buyers. With efficient marketing, Kreations
Trade Market will achieve its goal of being the top provider of nail care and treatment services in
the region. Lack of sufficient funding can also impede the performance of the business. Lack of
adequate funds cannot sustain the business, ensure adequate stocking and cater for all expenses
(Le Trinh, 2019). Therefore, it is required that the management team accumulate enough funds
to ensure the business's efficient operation. Furthermore, over-customizing can lead to poor
performance of the nail salon (Le Trinh, 2019). When nail technicians say yes to all customer
requests, they may risk under-delivering. Nail technicians should be able to convince customers
to get the services that they can deliver as long they meet their quality expectations.
Difficult Employees
Some employees can be difficult to work with when starting or operating a business.
Kreations Trade Market will be having a new set of employees with different characters and
attitudes. Sometimes some employees like causing tensions in the workplace. For instance,
formulating and circulating false information can cause tension in the workplace. Difficult
 29

employees also include those who do not like taking responsibility for their mistakes because
they are good at them (Miller, 2010). For instance, the best nail technicians in Kreations Trade
Market's workforce team may refuse to apologize for coming to work late and instead refuse to
be productive when confronted because they know the business cannot afford to lose them.
Handling this can be quite challenging for the management team. Kreations Trade Market may
also have employees who are always pessimistic about any changes or improvements it may
intend to initiate. Although it is vital to respect personal differences, such pessimistic attitudes
can undermine the business's objectives.
The management team needs to address such problems early before they grow into major
issues for Kreations Trade Market. The manager must identify the causes of the behavior and
critique the bad behaviors instead of ridiculing the workers (Miller, 2010). The manager should
monitor the workers' behavior and guide them to develop the right attitude towards work. All
employees must understand that they have a duty to deliver productivity, and no one is more
special than the other. However, this should be done cautiously to avoid losing good nail
technicians from the business. Talking to these employees and making them understand the
importance of obeying rules and embracing productive changes will be a vital step in handling
complex behaviors that will contribute to their success and that of the business (Miller, 2010).
Lack Of A Workplace Culture
Every organization must have a workplace culture that drives the workforce and the
management to deliver the business's expectations (Cravens et al., 2015). Workplace culture is an
environment that the management creates for its workforce. An organization has to mix the
organization's values, traditions, leadership, attitudes, interactions, and behaviors to develop a
relational and emotional environment at the workplace (Cravens et al., 2015). Workplace culture
is not documented but is felt by the workforce. Kreations Trade Market currently lacks a
workplace culture that creates a bond between its team. As a new business, the management has
the role of establishing its unique workplace culture that motivates employees and drives
productivity. Workplace culture can either create an excellent or toxic environment for workers.
It shapes the environment that the employees work in. Therefore, the manager is responsible for
fostering a pleasant workplace culture that attracts and retains good nail technicians. Kreations
Trade Market will create an environment where its staff enjoys working with good workplace
culture. The workplace culture should also allow everyone in the staff and management team to
grow both professionally and personally. However, developing and maintaining a positive
workplace culture is a big challenge for managers. There is no single procedure to create a
workplace culture that employees find pleasant. Nevertheless, the management can define the
business values that the staff should live in their working routine. Fostering values such as
respect, diversity, productivity, and collaboration can be an efficient strategy for developing a
positive working culture (Cravens et al., 2015). The manager has to be a good coach and guide
the team in adhering to these values. Workers should always be able to reflect on the business
values when engaging in their work and interacting with other employees and customers.
Absence Of A Clear Management Structure
A common problem in managing a new team is the lack of a clear management structure
or a clear understanding of the power structure. Most start-ups adopt the horizontal
organizational structure, wherein the staff answer directly to the manager. As a small business
start-up, this organizational structure is the most appropriate for Kreations Trade Market. A lack
 30

of corporate culture can really create confusion since employees will not have a transparent
supervisor to answer to. Therefore, the manager has to establish a clear power structure that the
employees will respect. This does not limit the employees' freedom but creates a clear structure
that will facilitate communication of employee concerns and organizational goals.
Poor Communication with The Staff
It is common for a manager to distance themselves from the rest of the workforce,
creating more significant problems within the organization. Workforce efficiency is fostered
when the manager communicates with employees efficiently and timely (Hussain et al., 2018).
Lack of communication creates a gap between the manager and the workforce, reducing the
productivity of the workers (Hussain et al., 2018). Employees need someone to talk to them
during and after a long day of work to encourage them to push harder the following day.
Additionally, managers need to deliver requests or orders and communicate organizational goals
properly for the workforce to take them positively and complete tasks as asked (Hussain et al.,
2018). Communication is a crucial factor that can destroy or build a business. To avoid tension
or employees making wrong assumptions, managers must communicate effectively. Improving
communication within the enterprise can be very valuable to the productivity of the business and
foster employee morale. Good communication also prevents conflicts from arising since issues
are communicated and addressed before violence erupts (Hussain et al., 2018). Kreations Trade
Market will need a manager who will foster communication with the organization. As a start-up,
the manager needs to communicate frequently with the rest of the workforce to motivate and
encourage them to be patient as they strive toward success. The manager at Kreations Trade
Market will have to communicate frequently with the workforce to ensure they understand what
is expected from them and when they should be able to meet particular objectives. The manager
should encourage face-to-face communication to strengthen their bond with the staff. A
messaging platform such as Whatsapp group can also be integrated to foster communication
between the management and the team.
Pressure To Deliver Progress
Everyone looks at the manager to deliver success for an organization. A manager might
feel the pressure to have success, which may lead them to overwork or overreact to failures of
the business (Gardner, 2012). Kreations Trade Market will be venturing into a very competitive
sector, but the business owner will be looking at the manager to deliver exceptional performance
and see the new venture penetrate the market. Therefore, the manager will have to work harder to
see the business's growth within the first year of its operation. However, this might cause them
behavioral and emotional problems that may affect their health and professional and personal
relationships. The manager may transfer the pressure to the employees, which might cause
mental unrest as they seek to grow the business as soon as possible. Kreations Trade Market
Manager must understand that a company cannot be built in a single day. It takes time for a
business idea to transform into a big business. According to Gardner (2012), managers must be
prepared to face unexpected situations that may slow their progress, but they have to face reality
and deal with them professionally. For instance, Kreations Trade Market may not get the
anticipated customers in the early days of its operation. However, the manager has to be
composed to face such challenges that will arise.
Making Hiring Decisions
 31

So many nail technicians have the skills and experience that Kreations Trade Market
needs. Some are self-employed, while others are employed but may wish to work with Kreations
Trade Market. Making the hiring decision is a big challenge for the management team since they
have to find nail technicians who are well-trained and experienced and capable of working
towards achieving new goals and adhering to the organizational values. The manager should
choose a few candidates out of a list of experienced professionals, which can be pretty
challenging. If a manager makes the wrong decision during the hiring process, it can affect the
business's overall performance. Therefore, the manager must develop a robust selection
procedure that does not just choose candidates based on a feeling but assesses them thoroughly
to determine how they would react to different situations. With the growing competition in the
nails and beauty sector, the manager also needs to hire talent. They must target employees that
offer the best skill and expertise to clients. The engaged team should also encompass individuals
who can develop a good business culture and transform Kreations Trade Market from a start-up
to an established business serving hundreds of clients per month. It is also important that the
manager avoids bias when selecting the team. The manager must strive to work against biases
and keep every procedure professional.
Conflicts amongst Employees
Conflicts will always arise in every workplace. Colleagues will always disagree on
something, which may lead to disputes. Kreations Trade Market's workforce will also experience
contests that will require the manager to intervene. Among the fundamental causes of conflict
among employees include misunderstandings, information deficiency, goal differences, and lack
of trust. These conflicts can be detrimental to the success of Kreations Trade Market. According
to the Chartered Institute for Personnel and Development (2015), workplace conflict can cause
emotional stress for the affected employees and divert their attention from achieving
organizational goals. If these conflicts are not resolved in earlier stages, they can escalate into
more significant problems resulting in more severe consequences. The repercussions include
unscheduled absences that may cost the organization's performance, while more severe conflicts
may result in employee turnover and litigation that may cost the salon's reputation and progress.
Therefore, the manager at Kreations Trade Market must address disputes between the workers
whenever they arise to prevent their escalation. When such conflicts occur, the manager has to
understand the issue before taking any action. Some conflicts can be productive, as they can lead
to innovative thinking when addressed properly (Chartered Institute for Personnel and
Development, 2015). In the case of personal conflicts between workers, the manager has to
mediate peace negotiations between them and ensure they understand the importance of
positivity and respect in the workplace. Open and fair discussions will help resolve personal
issues between the workers and enable them to continue working to deliver their best. The
Chartered Institute for Personnel and Development (2015) noted that productivity could only be
achieved in a peaceful and pleasant working environment.
Retaining The Best Employees In The Competitive Environment
Kreations Trade Market will have to strive to retain its talented workforce. Every
business wants a team that can deliver exceptional services to clients (Gómez, 2007). The major
challenge for the manager is maintaining qualified workers within a firm. If Kreations Trade
Market fails to offer nail technicians their worth, they will find another salon that will repay their
hard work and talent. It is not easy ensuring that every employee is supported and happy in their
 32

roles. However, the manager has to care for all workers and appreciate their efforts. They have to
be paid what they are worth and expand their offering as the business grows through regular
recognition and rewards or benefits. Since Kreations Trade Market is a start-up, it will take time
to generate enough revenue; hence the manager has to encourage its staff to continue working to
grow the business, which will transform into better salaries or commissions in the future. This
business will only prosper if the manager ensures its talented workforce does not leave for better
deals and remain focused to deliver quality.
Keeping Up With The Market Trends
The beauty and nail industry is ever-evolving, with consumers changing their sense of
fashion frequently. One of the biggest challenges that Kreations Trade Market will face is
keeping up with the trends. The manager has to ensure that the business is equipped with the
latest equipment and products and that the employees have the skills and knowledge of the latest
nail designs, art and manicure, and pedicure products. As skills become outdated, the manager
has to nurture knowledge and motivate and inspire growth in the team. E-learning platforms such
as Youtube have emerged to aid individuals acquire any skills without attending physical
classrooms. The manager should ensure that the team is up to date with the skills and knowledge
by notifying them of the trends and directing them to the e-learning platforms that offer the
training. Refreshing employees' skills and expertise enables them to be ready to face any changes
that come their way.
Poor Cashflow
Money remains to be the biggest for most start-ups (Gómez, 2007). Although some get
lucky with their cash flows, numerous businesses fail in the first years of their operation because
of a lack of finances (Gómez, 2007). Poor cash flows slow down the progress of many
businesses, impairing efficient operations (Gómez, 2007). Kreations Trade Market must have
sufficient capital to fund its operations, especially in the first year of its operation when sales are
still staggering. The stability of this business lies in its ability to cover its bills and expand in the
market, which can be achieved with a stable cash flow. Kreations Trade Market indicates that the
business will generate enough revenue to cover its expenses and grow in the market. However, if
the projections do not become a reality, the salon will not succeed. Therefore, Kreations Trade
Market's team has to do primary research on the market in Myrtle Beach to determine the most
efficient position to situate the salon. The strategic positioning of the business will attract
customers and generate the projected income. The manager also has a responsibility to manage
the business's funds to take it to the next level.
Winning Customers Trust
The customer is always the king and the sole driver of business success (Gómez, 2007).
A start-up only becomes a business when customers start paying for the goods and services
offered (Gómez, 2007). However, winning customers' trust is not simple and sometimes becomes
the most challenging for managers. Customers must understand and believe that Kreations Trade
Market offers legit services that satisfy their needs and wants. Getting the first customers is the
most complex task that requires managers to invest heavily in marketing. Proper marketing will
contact Kreations Trade Market for the first clients. The quality of services offered by the nail
technicians and the general treatment provided to clients at the salon will then determine if they
will come back. Satisfied customers create a loyal customer base that progresses a business to
 33

excellence. Their reviews and word of mouth on the salon's website and on social media will
drive the start-up to success (Gómez, 2007). Kreations Trade Market will have to work
aggressively toward establishing a customer-centric philosophy that will guide all of its
operations. The staff will also have offer quality services and show warmth to all customers to
encourage them to return and recommend the salon to their friends and families.
 34

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 35

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Appendix
Projected Revenue growth for Kreations Trade Market

Kreations Trade Market's Projected Revenue Growth

900,000

800,000

700,000

600,000

500,000

400,000

300,000

200,000

100,000

0
FY1 FY2 FY3 FY4 FY5

Financial years

Estimates of revenue growth for Kreations Trade Market Salon.

Nail Salon Services’ Consumers and Trends
 38

Share of nail and hair market consumers adapted from Nbadmin (2020).