Executive Men's Saloon Business Plan

1.0 Executive Summary

Executive's is an upscale gentleman's barber shop that offers today's progressive gentlemen a
haven where he can sit back, relax and experience the "Class" art of grooming and services in a
gentleman's club atmosphere, which is masculine and therapeutic.

Executive's is aimed at an exclusive market and a discerning customer base, and will add
tremendous value to our community while offering a combination of "Class Services" not
currently being offered by any competitor in the surrounding area. We intend to be profitable
by increasing our client base through becoming a highly sought after destination.

Our goal, beyond becoming a profitable business, is becoming a trusted destination whereby
the clients in our community can come to refresh their minds and bodies, replenish their
energies, and network with their colleagues and friends!

1.1 Objectives

Referring to the mission that has been described, which is to creat a business with sustainable
and growth system, Executive Men's Salon has the goal of developing a good barbershop
business managment system and focused on customer satsfaction, so in the three years period
will be able to become a good barbershop business with effective and efficient business system,
and provide highquality barbershop service.

1.2 Mission

 Our vision is to become the number one choice when it comes to barbing saloon in the
whole of Addis Ababa - Ethiopia and also to be amongst the top barbers shop in Ethiopia
within the next 3 years.
 Executive Men's Salon is in business is to establish a first class and standard barbing salon
that will take care of both highly placed clients and lowly placed clients as long as they can
afford our services.
 We want to become one of the leaders in the barbing salon services industry in Addis
Ababa, and in Ethiopia.

1.3 Keys to Success

The keys to success in our business are:

1. Location: Providing an easily accessible location for clients.

2. Environment: Providing an environment conducive to giving relaxing and professional
service.
3. Convenience: Offering clients a wide range of services in one setting, and extended
business hours.
4. Reputation: Reputation of the owner and staff as providing superior personal service. 
5. Effective advertising: Advertising in the corporate environment.

2.0 Company Summary

Executive's is a full-service gentleman's barber shop dedicated to consistently providing class

men's grooming services to our clients, high quality products while furnishing an enjoyable
relaxing atmosphere at an acceptable price/value relationship.

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Our Motto: "Beyond Expectation"

The timing is right for this venture. Patiently searching for the last few years for a similar highly
recognized existing business in a prime location, was unsuccessful. We therefore decided to
build one from the ground up.

2.1 Company Ownership

Executive's is a privately limited company co-owned by W/ro Metsinanat Mges and her husband
Ato, Demelash Gebre. Metsinanat Mges has experience in the hair industry. She has worked as
a manager.

Ato, Demelash Gebre- is the advisore and accountant of this business.

To achieve our objectives, Executive's is seeking loan financing. This loan will be paid from the
cash flow from the business, and will be secured by the assets of the company, and backed by
the character, experience and personal guarantees of the owners.

2.2 Start-up Summary

After spending several months searching for a high-end exclusive gentleman's barber shop to

purchase, the owners decided to start an exclusive barber shop - men's grooming services from
the ground up. The start-up capital will be used for the rent, design, improvements, and
equipment for the shop. The start-up cash has been marked for the estimated amount needed
to cover operational expenses for the first two months.

3.0 Products and Services

Executive's is considered an upscale full-service barber shop - services exclusively for men. We

offer our clients a gentleman's club atmosphere, with a complimenting wide range of services
and products that include:

Services:

1. Hair: Cut and style,  one step hair color, highlights, toner, corrective color, hair and scalp
treatments
2. Shaves: Modern, Traditional straight razor shaves, hot towels, and balm treatment
3. Nails: Manicures, pedicures
4. Waxing Services: Eyebrow shaping
5. Men's Services: Essential facials and peels, head massage
6. Hair Laser Removal: Hair removal on neck, back, ears, etc.
7. Shoe Shine: Shoe shine service in the waiting room or while services are being performed.

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Products:

Shave creams, soap, bath oils, skin care, shaving accessories exclusively for men

Explanations and/or consultations will be provided on all services and products if needed.

Product and Service Description

Men's Services  
Shampoo, Cut, Style, Blow-dry $ 38
Hair and Scalp Treatments $ 20
Colour Blending or Highlights $ 40 and Up
Moustache and Beard Trim $7
Moustache Trim $5
Stately Shave (Hot towels, Balm) $ 30 (30 minutes)
Hair Style and Stately Shave $ 60
Eyebrow Shaping $ 12
Natural Nail Grooming $ 15
Royal Pedicure $ 38
Essential Facial $ 65
Deep Tissue Massage $ 75 (1 hour)
Laser Hair Removal $ 85 and Up
Shoe Shine $ 5 and Up
   
Products  
Men's Shave Creams, Oils, Soaps $ 20 and Up
Accessories $ 18 and Up

4.0 Market Analysis Summary

Executive's will focus on the professional male. Previouse studies revealed that 85% of
professional men had personal hair grooming services performed during the workday. The
space at Arabsa Condominum site fits the demographics for our business. Applied Geographic
Solutions estimates that more than 30,000 people live within a three-mile radius of our facility.

4.1 Market Segmentation

Our business market is targeted according to Ages. The three major categories are Adult,
Teenager, Kids and Elders. (See chart and table below.)

 
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The following table and chart depict our potential customers with a conservative annual growth
rate of 4%.

4.2 Target Market Segment Strategy

Except Kids all market segments have money on hand, and lead professional lives filled with
very busy schedules. All persons usually need hairstyling regardless of income level, and make
the effort to find money available to style their "look."

4.3 Service Business Analysis

We are part of the retail health and beauty industry which has four major types:

1. Salons: Stores with only hair styling services and products.

2. Day Spas: Stores specializing in body health maintenance through a variety of services and
products.
3. Day Spa & Salon: Stores combining the services of the two aforementioned.
4. Health & Beauty Products: Stores selling only merchandise product covering the wide
range of products available but not inclusive of those sold by salons and spas.

4.3.1 Competition and Buying Patterns

Clients choose men's grooming services based on proximity to their daily travels from home
and work, reputation for high quality service, and good pricing. With our combined services to
the male professional, we don't feel we have competition.

5.0 Strategy and Implementation Summary

1. Emphasize quality, originality, and "Class Service". We will differentiate ourselves

from our competitors by offering a staff of practitioners who are not only certified in their
professions, but will be trained in understanding the dynamics of customer service so as to
maximize the connection to their clients and more easily meet their clients expectations.

2. We will provide a unique atmosphere. From our professional staff to our ambience of
our barber shop,

Executive's will distinguish itself as a completely trustworthy and soothing setting where clients
can enjoy being pampered, escape the stress of their everyday lives and enjoy the camaraderie
of friends and colleagues.

3. Build a community/corporate relationship-oriented business. We will focus on

strengthening the trust of our customer base, and providing not only services, but
information that will aid everyone in the progression of obtaining a balanced and healthy
lifestyle.

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5.1 Competitive Edge

Our competitive edge is a combination of our unique services, outstanding location, and our
interaction with our clients. By providing our clients a gentleman's atmosphere and provide
class services, we build relationships of trust and satisfaction. Our clients will come to depend
on our unique services and fulfilling environment.

5.2 Marketing Strategy

Our marketing strategy is the key to our success:

1. Emphasize our name and unique services and environment through advertising.
2. Focus on the convenience of our location.
3. Build community relationships and corporate relationships through unique and quality
service, a friendly caring atmosphere, and delivering class service.

5.3 Sales Strategy

1. Our umbrella sales strategy is to sell Executive's to the male professional as a uniquely
desirable destination that will enhance their lives.

2. We will sell Executive's through each employee's skill, courtesy, and warmth, creating a
trusting impression on all clients, and establishing loyalty and return visits. We will ensure
each visit to Executive's is a relaxing and memorable experience, so that clients can always
depend on our brand of service when they arrive.

5.3.1 Sales Forecast

The important elements of the Sales Forecasts are shown in the chart and table below. Initial
sales forecast indicate first year revenue of  birr 702,000.00 increasing to birr 877,500.00 by
the end of the second year, then birr 1.1 million by the end of the third year. These figures are
based on revenue from minimum average estimates from barber shop hair styles and additional
services, with sales costs reflective of the 40% commission earnings to each barber/therapist.

5.4 Milestones

The following table lists important store milestones, with dates, implementation duty, and
budgets for each. The milestone schedule emphasizes the timeliness for implementation per the
sales and marketing targets listed in the detail in the previous topics.

6.0 Management Summary

The management philosophy of Executive's is based on respect for each of our fellow
employees, respect for every client, and individual responsibility. Executive's success is
dependent on the warmth and uniqueness of its atmosphere which is generated by a fun-loving
and caring employees. The management team will consist of the owners, and the advicer. We
will hire only those who demonstrate the qualities necessary for working in a professional
environment, and the willingness to move forward in continuing education. We will be hiring the
ultimate "people persons" to provide class service.

 
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Organizational Structure

Our initial team will consist of the owner and 10 employees. On the shop floor, there will be six
barbers, one nail specialist, one shoe shine person and one receptionist. Initially there will be
one full time combination aesthetician/massage therapist. As our client base grows we will add
additional barbers, which then will be working two shifts per day per station. We expect to have
12 employees by the end of the first year and 14 employees in years two and three.

Management Team Gaps

We believe the experience of our team covers the needs to make the business plan for
Executive's a very successful reality. We will review the current talent of the salon and re-
engineer accordingly. We plan on outsourcing payroll and benefits.

6.1 Personnel Plan

The Personnel Plan below reflects our projected need at opening, and carries through the
second year expansions.

7.0 Financial Plan

The premier element in our financial plan is initiating, maintaining, and improving the factors
that create, stabilize, and increase our cash flow:

1. We must create visibility so as to create customer flow.

2. We must maintain a dependable, cheerful employee force so as to minimize turnover.
3. Create a brisk turnaround on our retail products, always maintaining viable stock levels.

7.1 Start-up Funding

Executive Men's Salon is seeking total funding of $260,000 of debt capital to launch its barber
shop. The capital will be used for funding capital expenditures and interior design, hiring initial
employees, marketing expenses and working capital.

Specifically, these funds will be used as follows:

 Store design/build: $140,000

 Working capital: $120,000 to pay for marketing, salaries, and lease costs until Executive
Men's Salon is cash-flow positive

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7.2 Important Assumptions

The key underlying assumptions of our financial plan shown in the following general assumption
table are:

1. We assume access to equity capital and financing to support our financial plan.
2. We assume our financial progress based on realistic sales to minimum sales against highest
expenses.
3. We assume there will not be an economic crash that would greatly hinder our target
market's access to their personal luxury finds.

7.3 Break-even Analysis

For our Break-even Analysis we assume monthly estimated operational costs which include
payroll, rent, utilities and other running costs.

The analysis shows that we need to generate monthly revenues, as shown below, to break
even. This total is less than estimated monthly gross. This estimation does not include revenue
from any other sources and is based on a barber shop client average of $80 and miscellaneous
services average of $35. Our yearly average per client is estimated at $58. Considering our
minimal assumptions show a monthly total client average of 610 we therefore believe our
break-even figures can be readily maintained.

7.4 Projected Profit and Loss

There are two important assumptions with our Projected Profit and Loss statement:

1. Our revenue is based on minimum estimated averages against highest expense

expectations.
2. Our major expense of rent and utilities is fixed for the next three years.

7.5 Projected Cash Flow

Our business is a luxury, retail-oriented business with clients who will pay primarily with credit
cards.

7.6 Projected Balance Sheet

Our Projected Balance Sheet shows we will not have any difficulty meeting our debt obligations
as long as our revenue projections are met.

7.7 Business Ratios

The following table contains important business ratios for the barber shop industry

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