Belle et Beau Cheveux
Belle et Beau Cheveux
Business PlanKyle Fedoruk
April, 2015
Table of Contents
Table of Contents...... 2
Executive Summary...... 3
1.0 Operations Plan...... 4
1.1 Location...... 4
1.2 Human Resources...... 6
1.3 Method of Payment...... 7
2.0 Marketing Plan...... 8
2.1 Marketing Research...... 8
2.2 Target Market/Segmentation...... 8
2.3 Competition...... 9
2.4 Competitive Analysis...... 10
2.5 Marketing Strategy...... 11
3.0 Financial Plan...... 14
3.1 Sensitivity Analysis(Customers/Day)...... 14
3.2 Sensitivity Analysis (Avg Price Spent/Customer)...... 15
3.3 Breakeven...... 16
3.4 Owner’s Compensation...... 16
3.5 Financial Projections...... Excel Sheet
Figures & Tables:
Figure 1: Location of Belle et Beau Cheveux………………………………………………………………..4
Figure 2: Current Lot on Vandale St...... 5
Figure 3: Hours of Operation...... 5
Figure 4: Floor Plan...... 6
Figure 5: Marketing Segmentation...... 9
Figure 6: Sensitivity Analysis (Customers/day)...... 14
Figure 7: Sensitivity Analysis (Price/day)...... 15
Figure 8: Breakeven Analysis………………………………………………………………………...... 16
Table 1: Competitive Analysis...... 10
Table 2: Owner’s Compensation...... 16
Executive Summary
Belle et Beau Cheveux is a hair studio which will be owned by Carole Ruppell. She will be owner/manager and will be responsible for everything to do with the business. There will be one other hair stylist hired by Carole. They will be paid on a commission basis and Carole and the stylist will also be in charge of receptionist duties. The hair studio will offer all hair services which will include cuts, styling, colouring, perms, straightening and up styling. Other services that will be offered will include skin services such as brow and lash tint and make-up as well as waxing services.
The location of this hair studio will be in Ste. Anne, Manitoba which is located approximately 50km southeast of Winnipeg, just off of the number 1 highway. Ste. Anne is home to 1626 people but there are 3 other communities within 25km away which will be targeted for customers. This will bring the target market up to 4500 people. Specific location of the hair studio will be just off of Main Street in Ste. Anne on a residential street. A sign will be on the Main Street meridian in order for customers to find us.
There is currently no competition in Ste. Anne or the towns we are looking to target. The closest competition is 20km South in the city of Steinbach which is home to between 13000-14000 people and has 5 hair salons/studios. They would currently have a good chunk of our target market, but we believe we can penetrate the market and utilize the fact that we are a more convenient option closer to home that can provide the same quality service as the salons in Steinbach.
Our target market is going to be people of all ages and of both genders. In order to build up our clientele to the point where we have enough return customers, we need to target everyone. Women are going to be targeted slightly more as their services cost more than men and they tend to be the gender that uses hair services more often than men. This will allow us become more profitable if we can build up more female clientele
Financially, we require $165,000 for start up costs as we are purchasing land and building our own building. This will be financed by $65,000 put forward by Carole as an equity investment and the other $100,000 will be borrowed through the bank and be paid back over 15 years.
1.0 Operations Plan
1.1 Location:
The planned location of Belle Chaise will be on 94 Vandale St. in the Town of St. Anne, Manitoba. St. Anne is located approximately 50km southeast of Winnipeg just off of the number one highway. The lot in which the building will be built is located on a residential street just off of the town’s main street and is currently selling at a price of $50,000. The cost of constructing the building will be approximately $100,000. The building will not be very large as this will allow use of some of the lot for customer parking. The proposed size of the building will be approximately 700sq. Ft. The lot currently has a garage. This may be used as storage for product but if it is deemed un-useful, it will be knocked down in order to provide more room for customer parking, as the cul-de-sac in front of the building may not be enough room to park seeing it is a residential street.
Figure 1: Location of Belle et Beau Cheveux
Being on a residential street may provide some challenges with people seeing the business, but the fact that the residential street is just off of the main drag that runs through the whole town will allow us to make a sign that can be placed on the middle meridian of main street that will point in the direction of the business. This will be especially important in the first few months of opening so people are aware that there is now a hair salon in their town. There currently is no other hair salon in the town so this is another reason we aren’t as worried about location. As time goes on after opening, it will only be a matter of time before word of mouth spreads about the salon which at such time the sign will no longer be needed on Main Street.
Figure 2: Current Lot on Vandale St.
With regards to hours of operation, we at Belle Chaise want to try and accommodate all customers as we understand that everyone leads busy lives. So our hours of operations are as follows:
Sunday / By Appointment OnlyMonday / CLOSED
Tuesday / 10:00am - 6:00pm
Wednesday / 1:00pm - 9:00pm
Thursday / 1:00pm - 9:00pm
Friday / 1:00pm - 9:00pm
Saturday / 10:00am - 6:00pm
Figure 3: Hours of Operation
Here is a look at the proposed floor layout of Belle Chaise:
Figure 4: Floor Plan
1.2 Human Resources:
There will be two people working at Belle Chaise:
· Carole Ruppell (Owner/Manager/Stylist)
· One other Stylist
Both Stylists will have their Journeyman ticket to ensure customers receive the best possible hair styling experience
The Second Stylist will be chosen by the owner through an application and interview process
Payment will be on a commission basis where the owner will keep 60% of her service sales and the other stylist will keep 40% of their service sales.
The other stylist will not be charged a chair rental fee but will instead be charged for the product used per customer in which they will keep track of how much product they use on a customer and then be deducted that amount on their pay
Both the owner and stylist will be in charge of receptionist duties until such time, business picks up and a receptionist is needed to allow the stylists to do their jobs
If business continues to grow, an additional stylist will be looked at for hire, as well as an esthetician in order to provide spray tanning and nail services
1.3 Methods of Payment:
Belle Chaise is mostly providing a service along with a small retail section of hair products for customers to buy and use the products at home that get used on them during their hair styling experience. This will mean that we will not provide any credit to our customers. Payment must be made by the customer upon completion of the service provided as well as purchasing hair products.
There will however be an accounts payable for us in which we will pay our supplier of hair products once a month.
2.0 Marketing Plan
With St. Anne being located in the south eastern part of the province of Manitoba where there are very few options for hair styling, we believe that there is a penetrable market not only in the town of St. Anne, but in the surrounding communities as well to provide this area with high quality hair services that is more convenient than driving into the big centers of Winnipeg or Steinbach.
2.1 Marketing Research:
Primary market research was obtained by the potential owner of Belle et Beau Cheveux as she lives in the community of St. Anne and was able to obtain information about the competition in Steinbach which allowed us to come up with our pricing strategy of competitive pricing. This was also how our information was obtained about there being no current hair salons in the south eastern communities surrounding and including the town of St. Anne. Secondary research was also conducted through website searches of the competition and for statistics on the populations of St. Anne and surrounding communities.
2.2 Target Market/Segmentation:
The target market for Belle et Beau Cheveux will be anyone who lives in the south eastern communities that surround the town of St. Anne (this will also include the town of St. Anne). Our biggest target will be woman as they tend to be more inclined to be the gender that seeks out hair services, but we are also looking to serve men, the senior population and even children and teenagers. The market that we will be looking to penetrate includes the town of St. Anne (pop. 1626) and the surrounding communities of Richer (pop. 500), Landmark (pop. 1300) and Blumenort (pop. 1000). These are the three larger centers around St. Anne but there are also many other small towns and villages within the area that we would be looking to serve. So this would give us an approximate total of 4500 people to target our hair studio to.
Below is a map of the projected segmented market that we are going after:
Figure 5: Market Segmentation
2.3 Competition:
In the four towns shown above in the segmentation circle, there is no current competition. None of the towns have a hair salon or barber shop of any kind. The closest competition lies in the city of Steinbach, MB which is approximately 20km from the town of St. Anne. Steinbach has a population approximately between 13,000-14,000 people and is home to five hair salons:
· Avenue Hair & Skin Studio
· Vivid Hair
· Hairline Salon & Spa
· Abstract Salon
· Rootz Hair Design
2.4 Competitive Analysis:
The following competitive analysis is comparing Belle et Beau Cheveux to the 3 stiffest competitions:
Belle et Beau Cheveux / Avenue Hair & Skin Studio / Hairline Salon & Spa / RootzOverview / Small town hair salon looking to serve the town of St. Anne and surrounding communities / A fairly new salon and spa which is fully accredited and up to date on all the new trends in this business / Offers the best in beauty, hair care, nails, skin care and cosmetics with main focus of exceptional customer service / Located near the outskirts of Steinbach in a main shopping area. Cheaper alternative to the other two competitors
Competitive Advantage / Quality hair styling, Convenience / Established clientele, Certified professionals with many years of experience / Established clientele, Well known (been in Steinbach the longest – over 20 years / Slightly cheaper, located near big shopping outlets
Target Market / Town of St. Anne & surrounding communities / Steinbach & Surrounding area / Steinbach & Surrounding area / Steinbach & Surrounding area
Products & Services / All hair services, Make-Up & Waxing / Hair Services, Make-up, Nails, Manicure/Pedicure, Massages / Hair Services, Make-up, Nails, Manicure/Pedicure, Massages / Hair Services, Make-up
Pricing & Costs / Competitive to the competition / Competitive / Competitive / Competitive
Strengths / Convenience, Quality Service that customers will want to return to, Marketing/Advertising / Established, Offer Hand and Foot Services & Massage Services / Established, All services including Hair, Skin, Nail and Spa / Convenience (close to the outskirts of Steinbach)
Weaknesses / New, Won’t have Nail & Spa services to start / Location (middle of the city) / Location (middle of the city) / Marketing (not well known)
Opportunities / Penetration into a market in which doesn’t have hair services / Up to date and accredited on all the latest trends in this industry / Not many as they’re the oldest salon in Steinbach / Have the opportunity of serving the shopping crowd
Threats / Competition, not having as many services / Competition / Competition / Competition
Table 1: Competitive Analysis
The biggest competitive advantage for Bell et Beau Cheveux will be the fact that we can offer high quality hair services like the ones in Steinbach but that are more convenient for the customers in the surrounding area. This is because customers in the town of St. Anne and surrounding area will not have to drive as far to receive these services.
2.5 Marketing Strategy:
Marketing will be very important in order for Belle et Beau Cheveux to get its name out there and make people of St. Anne and surrounding communities aware that we are now looking for new clients to provide hair services to. This will be done through radio ads, newspaper ads, and a flyer drop in all the communities. A website will also be developed and social media will be used to advertise as well as some promotional events.
Radio Ads:
There are three radio stations in Steinbach in which we would be looking to run ads with all of them in order to reach everyone in the surrounding communities. The average cost to run an ad is $600/week so we would look to run an ad for 1 week on Mix 96.7 CILT-FM and 1 week on CHSM 1250 AM. We would run a 2 week ad on the country station CJXR 107.7 FM as country is the most popular genre of music and we would probably reach more potential clientele this way.
Newspaper:
An ad will be run weekly in the Carillon newspaper that gets distributed to all the rural communities in which we are looking to serve. These ads will cost $50/month and will run for the duration of the year in the first 3 years until clientele has reached its maximum.
Flyers:
There will be a flyer drop in all the communities in order to create awareness of our existence. The flyers will have information on what our hair studio will offer and where it is located. The cost of printing these flyers will be $180 and will be done once for sure each year and maybe more in the first year.