The Family Affair Salon and Spa is a novel and profitable salon that is going to be service oriented. Services offered will include the latest hair services, for instance, perms, shampoo, curling, conditioning and trendy hairstyles, and cuts. Additionally, the salon will provide cosmetic services like facials, wax treatments, and pedicures.
Target clients, as the name suggest will include the family. Focus is on the upper and middle class groups as the target market. This will mainly be young adults in college and school aged children. The salon will also offer private rooms for one-on-one private sessions with clients. Trained staff will offer professional services to clients. This will also be accompanied by an additional set of complimentary health foods and snacks, for example, mini sparking water and herbal tea.
A Family Affair Salon and Spa mission statement is to offer quality, up to date, and speedy service to our clients to enhance and promote external and internal beauty. Provision of unique experience to the client will ensure achievement of this goal.
Competition in the hair market industry includes Premier Salons, Sport Clips, Regis, and Ratner Companies. Since will are in Manhattan, Regis will be our main competitor. Despite the growth of small specialty businesses like nail salons and spas in the Upper East Side of Manhattan, there are no full service salons that provide a collection of services at reasonable prices part from us.
A Family Affair Hair Salon marketing strategy will involve curving out a niche for the business in the market share. This will involve providing an assortment of products and services that caters for both genders and different economic statuses of the people. Different market segmentations will be the basis of the pricing strategies. These market segmentations will include the upper and middle class markets.
A Family Affair Salon will incorporate secondary research in the market, which will aid in identifying gaps and weaknesses in the hair salon industry. Published journals contain such information.
A Family Affair Salon management will be by the owners of the company Francesca Kogan and Barnaby Goberdhan. Their knowledge and experience in operation management will assist in the managing of operations of the salon. Assistance will come from the other five additional staff members who have the expertise and knowledge in the field of cosmetology.
These members include Tanya Horneberger, Glenda Francis, Harinder Khakh, Tamiko Meyers, and Michele Cox.
Initial start up costs amount to $300,000. Members will contribute $100,000. The remaining $200,000 will be a loan from JPMorgan Chase Bank. The company’s business model will provide a sales forecast for the business. Growth of finances is to grow at a rate of 0.2 % annually during the initial five years. Salaries and wages will account for 38% of the total expenses. In the first year, salaries and wages will account for only 8% of the total revenue during the first year.
After a good run of five years, the exit strategy for A Family Affair Salon is to sell it. The finances generated from the sale will pay any outstanding debts and the remainder divided equally among the seven members. The final value of the business after five years will approximately be $4,593,000 using a growth rate of 9.8 %.