Beauty Salon
Salon Flora

34 Destin St.
Naples, Florida 34102

Staff at BusinessandMarketingPlans.com

This business plan was created for two highly trained, veteran hair stylists with an established client base and lots of business savvy. They sought capital to open an upscale salon to further serve the styling needs of regional customers. This plan raised $70,000 for the company's owners.

EXECUTIVE SUMMARY

Salon Flora is a beauty salon dedicated to providing customer satisfaction with excellent service, quality products, and an enjoyable atmosphere at an excellent price/value relationship.

Nature is not something you can hold onto-it is something we are borrowing from our children; we must do our part to keep the balance in life. We strive to keep balance in our clients' life by supplying services and products that enhance physical appearance and mental relaxation. We will maintain a friendly, fair, and creative work environment which respects diversity, ideas, and hard work.

To achieve our objectives, Salon Flora is seeking $70,000 in additional loan financing. This loan will be paid back from the cash flow of the business and will be collateralized by the assets of the company. It will be backed by the character, experience, and personal guarantees of the owners.

Keys to Success

The keys to success in our business are:

• Location, Location, Location: providing an easily accessible location for customers with plenty of off street parking.
• Environment: providing an environment conductive to relaxation and professional service.
• Convenience: offering clients a variety of services in one setting, and flexible business hours.
• Reputation: superior personal service reputation of the owners/managers and other "stylists."

BUSINESS OVERVIEW

Company Summary

Salon Flora is designed to enhance each client's image and outlook. We specialize in restoring balance to the body and mind through the HairFlux philosophy of beauty, wellness, care for the environment and our passion for service and retail. We will provide a unique experience for our guests. We treat each client as if they were a guest in our home, offering a cup of HairFlux's comforting tea and a cozy robe to change into. Our outstanding stylists will benefit from ongoing HairFlux education classes both in the salon and at other choice locations.

Products & Services

Salon Flora is considered an upscale beauty salon. We will offer a wide range of services that include:

• Hair: Precision cuts, relaxers, perms, colors, color correction, shampoo, conditioning, curling, re-constructing, weaving, waving, and a patented hair straightening system
• Skin Care: European facials, body waxing, and massage
• Provide added value services to each of our guests, such as: a stress-relieving scalp treatment, stress-relieving hand massage, and make-up touch-up after each service
• Retail HairFlux products so that the client can reproduce their enhanced appearance.

Competition

There are a number of salons in our area; however none will be like Salon Flora. Salon Flora will set itself apart from other beauty salons. We will offer over twenty-five years of combined hair care experience, weekly education to our staff, added value services and a full line of HairFlux products. Our business atmosphere is a relaxing one where clients can kick back and be pampered.

Soft drinks will be offered to clients as they enter for service.

GROWTH STRATEGY

The major market for our products and services is singles, couples, and families within but not limited to a twenty-mile radius. The owners/managers have clients that travel twenty to ninety miles, and many plan their business around their hair care needs. Salon Flora has easy access from a main highway with plenty of parking, a rarity in the downtown business district. Our service is for individuals but might be beneficial for companies and corporations, through incentive programs, such as business make over or promotional services.

We will also promote bridal packages through local hotels and associated business and day-of-beauty packages complete with lunch and door-to-door limousine service, if desired. HairFlux Corporation will offer our services through their 800 phone number, website, and corporate store at the nearby Shady Oak Mall, along with our own Salon Flora website. We will concentrate on the Palma county area in southern Florida.

Marketing & Sales

Our marketing strategy is a simple one: satisfied clients are our best marketing tool. When a client leaves our business with a new look, he or she is broadcasting our name and quality to the public.

Most of our new clients are referrals from existing clients. We reward clients for referrals with free shampoo and/or conditioner. Distribution of coupons for a free gift with product purchases or services at the salon "grand opening" celebration will strengthen customer loyalty.

We will publish ads in local publications and magazines to promote our staff, services, and retail products. The publications we will work with are:

• Best Images: a full color, bi-monthly advertising magazine with a 100,000 home circulation in the regional area. This full page, color ad will cost $4,000 and reach potential upper-income clients.
• All the News Magazine: a trusted reference for business and shopping resources, with a home circulation of 50,000 in the nearby coastal areas. These full-page color ads cost $1,115 for an inside page, and $3,000 for front cover. These ads will reach potential clients with $50,000 to $150,000 incomes.
• Yellow Pages: We will also place ads in the Yellow Pages which have the entire county circulation.
• We will also have our own Salon Flora-HairFlux Institute website. This website is always available for stylists and guests. Information on current promotions, upcoming events, education and links to the HairFlux Corporation are instantly available.

MANAGEMENT SUMMARY

Salon Flora is a HairFlux concept salon. The upscale brand recognition of HairFlux enhances the reputation of the salon. Salon Flora will be organized and managed in a creative and innovative fashion to generate very high levels of customer satisfaction, and to create a working climate conducive to a high degree of personal development and economic satisfaction for our staff.

Training classes to help improve employee product knowledge and skills will be conducted on a regular basis. As the business grows, the company will consider offering an employee benefit package to include health and vacation benefits for everyone.

Management Team

Yvette and Alan have both been independent contractors for a combined thirty-two years, and have the experience, passion, and working knowledge to get the job done.

Alan F. Slinger

Owner/Manager/Artistic Director. Alan has been in the beauty industry for eighteen years and brings a large variety of experience to this venture; upon graduating from Monique Beauty College in 1990 he worked for one of New York's leading salons, helping with education and platform work for both HairFlux and Matrix/Logics Corporations. He was also a part-time Artistic Educator with Matrix/Logics, responsible for color and hair cutting classes in New York City. His previous experiences consist of commercial, retail stores, management, construction and manufacturing. Alan's retail management experience and general business knowledge grounds him in the realties of running a successful business. He loves dealing with people, and has the drive, ambition, and discipline to manage the business and its employees. This career is his life, his calling.

Yvette Cruz

Owner/Manger: Yvette Cruz was born in Barcelona, Spain, forty years ago. She is the second child of nine. She began her career by mentoring her three cousins.

At age 21, she moved to the United States. After finishing her education at Monique Beauty College she went to work in her cousin's salon. Cruz is involved in various activities in the world of beauty. She is responsible for the designing and marketing of a specialty tool called the Color-Wandz, created to expedite the stylist time in color services. She has worked with the HairFlux product line for the past eleven years as an independent contractor, and also has been involved in many global events for HairFlux. She is a firm believer in donating her artistic talents for various events.

Personnel Plan

The personnel plan calls for a receptionist starting in the second year. The receptionist will answer phone, book appointments, and receive payments for services and products. There will be eleven hair stylists, one artistic director/owner, one stylist/owner, two part-time assistant stylists, one esthetician and a massage therapist. Everyone but the receptionist and assistants will be independent contractors, and will pay a weekly fee for their station or treatment room.

FINANCIAL ANALYSIS

Our goal is to be a profitable business beginning in the second month. The owners and stylists already have an existing client base.

The financials that are enclosed have a number of assumptions:

• Chair rental value is $250.00 per week × 11 chairs = $2,750.00 per week x 52 = $143,000 per year. This figure is not assumed until the end of the first year. Our projections are based on opening with three stylists. We will then add a stylist the second month, the third month, the fourth month, and the sixth month. Salon Flora will then add two more stylists in the eighth month and two more in the tenth month.
• Revenues will grow on chair rental each month and level off at the end of the first year with all chairs rented.
• Revenues will grow at an annual rate near 50% on retail sales in year one.
• Revenues are expected to increase in November and December due to holiday sales at this time of year. We anticipate this increase from gift certificates and increased product sales, and to stay steady throughout the following year to account for the normal flow of new clients coming into the salon and our aggressive marketing program.
• Estimates for sales revenue and growth are intentionally low, while anticipated expenses are exaggerated to illustrate a worst-case scenario.

We have included cost of goods sold in our calculation of net sales because we expect to do a high volume of retail through our salon. However the majority of sales are coming from the services and rental income.

Product sales will be a major part of our business. We are projecting sales of $4,000 a month increasing each month thereafter as we add stylists to the salon. We expect each stylist to sell a minimum of $100.00 per day in retail. We also project the treatment rooms to generate a minimum of $170.00 per day in retail sales. We are certain that in time these services will be a large part of our revenue, but to err on the conservative side, we estimate revenues from these services to be only $3,655.00 a month for the first year.

To assure the initial capital fund lender that the owners are financially stable, personnel tax returns for both partners for the last three years are attached. Another source of collateral is Alan Slinger's home, valued at $500,000 with a payoff balance of $395,000.

Projected Profit and Loss

We expect sales to hit $240,450 at the end of the first year of business, and should increase to more than $479,500 by the third year as the reputation of the salon, its stylists, and services grow. Second year revenues also anticipate having a full staff.