Advanced Estimating Technique7
Our intention is to open an all-inclusive beauty salon in Athens, OH. Athens, OH is located 1 hour away from Columbus, OH. Its largest employer is Ohio University although it is home to Wal-Mart, Lowes, and many other smaller businesses. Currently there is a lack of professional services related to beauty. For the most part if these services are needed, clients are forced to drive 1 hour to take advantage of them.
Our idea is to open an all-inclusive beauty salon which caters to all ethnic groups within six months. We also plan to sell various salon and personal care products. We have decided to purchase a franchise from John C. Williams Services. This Beauty service supplier is well known all over the United States and we as though it will bring us instant brand recognition. There is a local Cosmetology college within Athens and there is multiple in Columbus, OH. We believe the proximity will help us to further build our reputation and grow our market.
As you can see from our Financial Analysis, we do lose money in the first year ($24,031). This is mainly due to our initial investment costs including the $40,000 franchising fee. Our analysis shows that we will make a profit every year after that. Our Net present value is &68,451.14 using the 2013 discount rate of -1.4%. We will be the first of its kind in this area and we believe if you invest with us now, we will bring profits well into the future. Project Description
The project that I am interested in starting is a hair salon that provides a one stop shop for all of your beauty needs. We will provide advanced hair stylists, nail technicians, makeup artists and a barber. As it stands now, this area is lacking a type of business such as this and currently out target consumers are driving an hour away to take advantage of these basic necessities.
Not only will this business provide a place to work for the local beauty school students, but it will also help us to attract a more diverse clientele to the area. We hope to offer service to a broad consumer base, more specifically the African American population in this area. Currently, there is nowhere in this area that provides these services to them and upon graduation from the local university, they often leave to find an area that is more welcoming to their culture.
We hope to benefit the local beauty school by opening a pipeline for a diverse student population to apply to the school and provide employment after graduation. We feel that we will be very successful due to the need for a business such as this. We have virtually no competition right now so the doors for success are wide open. WBS
1John C. Williams Beauty Services
1.1.1Market Research on Area Economy
1.1.2Identify Target Market
1.1.3Interview Target Market
1.1.4Interview local Beauty School Representatives
1.1.5Research John C. Beauty Services Financials
1.1.6Interview John C. Beauty Services Representative
1.2.2Apply for License
1.2.3Sign off and Approve all franchising document
1.3 Business Plan
1.3.1 Visit Small Business Association
1.3.2 Set up meeting with local University Business Professors to discuss plan 1.3.3 Secure 5 year Business Plan
1.4 Secure Financing
1.4.1Set up meeting with local Banks about Loans
1.4.2Review all financing options with SBA
1.4.3Review all Financing Options with local University Professors 1.4.4Sign off on loan
1.5.1Meet with local realtor/leasing agents
1.6.1Research Salon/Barber Equipment Prices
1.6.2Buy Equipment (chairs, sinks, dryers, etc.)
1.6.3Research Nail Equipment Prices