On
August 3rd, Dad received the following email, written in both English and Spanish:
Jordan wrote:Hello Mr Antonio,
Thank you sir for your response,your mail is well received and noted.
I am so happy to read from you Sir,it has been a great moment to know more about your daughter (Raquel),she is a good,lovely and caring person i have ever met in my life.We have been good with each other so far and i am glad she is so happy.
About my qualification of been a Salon Entrepreneur,i have the Skills to manage and maintain a standard company.I think to gain the skills you need to work in a hairdressing/barber salon,that is how it works here in the country - I am trying my best to learn and get more into doing different service on salons to satisfy client,our certificates and diplomas cover a wide range of skills from shampooing, cutting, perming and styling to advanced colour correction.A Hairdressing/Barber Salon NVQ is for anyone who is serious about a hairdressing/barbering career. There are options to suit individual needs and aspirations - and if you are already working in hairdressing, you could develop your skills to become a senior stylist.
In executive Summary of a business plan,Firstly,the company should have a unique name to be Known because is a salon that allows the entire family to have their hair needs satisfied in one convenient visit.There are many quick salons here in Nigeria,however, many of these salons, such as "Your Wonderful Extensions & Spa", only provide the minimum services, whereas the upscale salons can be inconvenient due to scheduling requirements and cost. The owner of "Your Wonderful Extensions & Spa" perceives an unfulfilled customer need for a low-cost salon that provides maximum flexibility and strong customer attention. Using this strategy, "Your Wonderful Extensions & Spa" will gain significant market share and create critical long-term relationships with its clients.
However,having a business as a personnel plan,Raquel and I has so much ideas to share with each other,despite she knows nothing about a Salon but her contribution of reasoning of putting ideas together was Perfect.I will say,as an entrepreneur i will be handling all hiring and training, purchasing, and retail sales.And also hire a receptionist to manage all of the appointments as well as the people who walk in and be responsible for the point of sale transactions.The company will be hiring six part-time hair stylists who will operate on a hourly/commission basis,and will be using a partial commission basis to create incentives for superior customer attention.The more the stylists attend to the customer's needs, the more money they will make off commissions. The company will invest time and money into training to ensure that clients receive the best experience possible making it easier to turn them into long-term customers.
There are some characteristics of a standard Salon,I mean being able to communicate well with clients and employees is a prime factor in the success of a salon. Communication skills needed in a salon include ironing out problems and building a good friendship with clients. Having employees who are both skilled and fit in with your business model is vital to a salon's success and some other such as the following.
*Services
The company should provide hair styling for the entire family. This includes hair cuts for men and women, permanents and hair coloring for women, as well as hair cuts for children. Shampoos will be offered for all adult services. Service is offered on a walk-in basis or by appointment.And to emphasize a customer-centric service where the customer's needs are always the priority.
The company will also sell hair care products which is forecasted to account for 15% of sales,these professional-quality supplies will include the ultimate hairdressing/Barber salon Equipment List
1. Salon Software & Marketing Tools
2. Service Accessories
3. Combs & Brushes ($100
4. Scissors/ Hair Cutting Shears
5. Electronic Hair Styling & Grooming Equipment
6. Salon Chairs With Accessories
7. Ring Light
8. Cart & Trolley
9. Shampoo Station/ Backwash Unit
10. Hood Dryer
11. Hair Styling Station
12. reconstructors and other styling aids.
*The Market
The hair styling company is highly fragmented with national chains which operate diverse franchises catering to all the market segments, and also including thousands of "mom and dad" salons that are very restricted in scope and services. This makes for a highly competitive market that has low barriers to entry and exit. In addition, the clients of hair styling have significant leverage due to the low switching costs they have. However, most Salon companies have tried to pursue only one general strategy in gaining market share.Some salons in Nigeria believes that it is possible to offer a differentiated service through improved customer service at no greater significant cost if the right employee incentives are provided.With this strategy in mind, the company's goal is to increase the number of clients served by at least 20% per year.
*Objective
The objectives for the first three years of a standard company operation include:
1. To create a service-based company whose goal is to exceed customer's expectations.
2. To increase the number of clients served by at least 20% per year through superior performance and word-of-mouth referrals.
3. To develop a sustainable start-up business, contributing to increased employment of community residents.
*Start-up Summary
The company will incur the following start-up costs:
1. Computer with point of sale terminal.
2. Computer with printer for back office.
3. Five cutting stations, each station requires a barber chair, cabinet, large mirror, blow dryer, curling iron, electric razor, several pairs of scissors, spray bottle, two sided mirror, and assorted combs & brushes and so more.
4. Desk for reception area.
5. Three couches for the reception area.
6. Display shelf for sale of retail products.
7. Legal fees for business formation and generation/review of contracts.
**Company Summary
The company summary in a business plan—also known as the company description or overview.I think is a high-level look at what you are as a company and how all the elements of the business fit together. An effective company summary should give readers, such as potential investors, a quick and easy way to understand your business, its products and services, its mission and goals, how it meets the needs of its target market, and how it stands out from competitors.
Before you begin writing your company summary, remember to stick to the big picture. Other sections of your business plan will provide the specific details of your business. The summary synthesizes all of that information into one page.
A Quick Rundown of What to Include,the company summary section of a business plan should include:
1. Business Name
2. Business Location
3. Legal structure (i.e., sole proprietorship, LLC, S Corporation, or partnership)
4. Management team
5. Mission statement
6. Company history (when it started and important milestones)
7. Description of products and services and how they meet the needs of the marketplace Target market (who will buy your product or services)
8. Competitive advantage (what sets you apart in the marketplace to allow you to succeed)
9. Objectives and goals (plans for growth)
**Market Analysis Summary
The company will be targeting three diverse groups of customers.And work hard to distinctly appeal to each of these groups.By focusing on more than one group, Other Salons companies are lowering their risk that in a downturn one group will negatively affect the company.
**Market Segmentation
The company will target three different market segments:
Men will typically make up 70-75% of the clientele. Men have shorter hair requiring a faster and simpler job.
Females who cannot afford an upscale salon. Women tend to favor a female specific upscale salon if they can afford it. There is not often a difference in quality of an upscale salon other than an upscale salon will tend to pamper you more, only accept appointments, and the facility is generally a bit plusher. Someone who is fiscally responsible as opposed to someone who likes opulence will favor a family style salon.
Young mothers with children.Most young children are notoriously difficult when it comes to getting haircuts. A style salon is a more laid-back place that allows the children to play while they are waiting and then will work with the parents in calming the kids nerves when they are ready for their shearing.
** Target Market Segment Strategy
The company will target each of the three groups separately. The males will be targeted by offering a quick, convenient, service. Because men tend to have shorter hair, they usually require haircuts more often. If they are getting a cut every two weeks and work normal business hours, most barbers are closed when the male customers have free time.So the Company will cater to males with evening hours, no appointments necessary, and quick turn around times.
Generally females prefer the allure of upscale salons, however, not everyone can afford this luxury. For this reason the company will provide the same quality hair styling, without the expensive price,the salons will target these customers by emphasizing the sophisticated,ultra-hip styling that the company can offer.
The company will also target mothers with children by offering the kids toys to play with while they wait and child-friendly hair stylists. Additionally, children receive a special rate reflecting the fact that children's hair grows so fast that it can be expensive to keep up with regular cuts, as well as the recognition that it generally takes a lot less time to cut a child's hair so it should be inherently less expensive.
** Service Business Analysis
The "hair" service business is fairly diverse, On one end of the spectrum you have the traditional barber, on the other end you have the fashionable boutique salons. Somewhere in between there are independent hair stylists, franchise barbers and stylists, and beauty salons.
** Competition and Buying Patterns
The company competitors include:
1. Traditional/Local barbers: They rarely serve appointments, it is generally a walk-in service. While barbers are usually willing to provide whatever cut you are interested in, they are generally providing straight forward haircuts, typically on the conservative side. The advantages of a barber is they are inexpensive and easy to use. Their disadvantages are often conservative styling capacities, sometimes a long wait as the barber may be an old timer who enjoys chit chat.
2. Franchised "quick salons: An example of this would be Supercuts or Best Cuts. In essence this is a franchised version of a company. The advantage of this style is the store will be the same from location to location and some people like this predictability.
3. Independent salons: These shops typically focus on a specific niche and do not serve a wide group of customers. The advantages to these could be an independent salon that fulfills all of your needs. The disadvantage is that because they tend to be more focused, more often than not this type of salon will not offer exactly what customers are looking for.
The buying patterns of men and women are quite different. Typically men are more price or convenience sensitive. Men typically care less about the task of getting their hair cut.For them whatever is easiest works best and Women on the other hand are more caught up in hair styling and tend to bond more with their stylists because they bond more, they are much more loyal to their stylist. Once a stylist has earned their trust they are more willing to blindly put their hair in the stylists hands.
Strategy and Implementation Summary.
The company will rely on three separate strategies to grow market share. The first is superior customer service. Customers will be blown away with the level of service that they receive. They have expectations of average (at best) customer service from a quick salon based on past experiences.
And will also be leveraging its high-traffic store front location in a shopping center to drive people into the salon. They will benefit from the shopping center association's marketing efforts to bring more people to the center.
Lastly,the company will use financial incentives early on to build a large,loyal customer population.
** Competitive Edge
The competitive edge is based on faultless customer service,that the hair cutting/styling market is crowded so it is difficult to stand out.So will stand out by providing superior customer attention. This is particularly important in the "quick salon" space that we should operate in because margins are a bit lower and the goal of a quick salon is to crank through customers.
The company will invest time and money into training to ensure that clients receive the best experience possible making it easier to turn them into long-term customers. By providing superior customer service,will be able to effectively compete against and outlast larger chains and independent stores.
In conclusion,I want to say thank you,for you are a good man,and hopefully there are lot to give out make sure its a successful course.The following information of this business plan will outline the important financial data,and Raquel and i believe on a good positive starting business together as one,with your help to invest strongly with trust.I will say,with the few words and needs i have listed so far it going to be an expensive Hair Salon which I don't have the capital to establish the idea business.All we could ask of you sir,is giving your daughter (Raquel) and I a chance to proof to you how reliable and capable we are to set up a busines.This is going to cost a lot more,which i can't tell the estimate cost of everything.but Raquel believe and trust you could help us achieved setting up this business and I think this is a opportunity for us to express our ideas to the world.And i want to thank you sir for your time,inspiration of your support and encouraging our ideas been shared,and Raquel and i will forever be grateful for giving us a chance to experience a new way of life.With this few point of mine of my idea business plan,i hope to have convience you to understand more of the actual company.
Thank you Sir Antonio.
Regard,
Tony
And one day later:
Jordan wrote:Good Morning Sir,
How are you sir?.I hope all is well with you and family.
Please sir,I wrote a letter to you yesterday about the Business plans you requested,and other ideas came on like that.They are good ideas to grow this Business.
And also,this morning,I gave it a thought to visit "Your Wonderful Extensions & Spa" which i told you about in my letters,they are one of the competitors we have in our list..I went there to know more about them,observe the place,their operation and questioning the Customer service desk for information
However,they never knew i came to get information and some pictures .I believe these will make some impact to start up our business too.It's a beautiful place but we can do the best out of it and more.They opens at 9am,it happens i was there so early at 8am waiting to open their salon.And before they could get customer comes in,30 minutes after opening the salon.I understand that is how they operate and i talks to let me took some pictures of the place,which i was permitted but not to other section of the place.
Evermore,i went there on getting information,which i did and its was a nice done for me.I am happy i took some pictures to show it to you.Sir,i am just trying my best to make everything possible starting up the salon,and you as our investor will be a great deal.
Thank you sir for your understanding.Here are the pictures i took.
Regard
Tony
It's kinda obvious that most parts of Jordan's "business plan" have been copy'n'pasted from
elsewhere here. He didn't even bother to rewrite em.
He also attached four photos of the "Your Wonderful Extensions & Spa" Salon (name altered) to his second email. Interestingly, the salon he allegedly visited is located in Lagos, not in Abuja where Jordan claims to live. Won't put the photos online, because according to Google image search at least three of them were taken directly from the internet. One's even the first result when doing a quick image search for the salon. Pathetic!
♀
