Gentlemen's Top Option Paper

Non-franchised Small Business Analysis
(Gentlemen’s Top Option)
Mark Anderson
MGT/418
June 01, 2015
Dan Daily

Gentlemen’s Top Option
Gentlemen’s Top Option is a business located in Burlington, Vermont, that I will be researching I order to purchase the company. This paper will give a brief over view of the business model used by Gentlemen’s Top Option, assess the necessity for training during the purchase of Gentlemen’s Top Option, identify the issues that need to be investigated when performing due diligence and conducting a feasibility analysis, any areas that could be negotiated during the purchase of Gentlemen’s Top Option, and the advantages and disadvantages involved in the purchase of Gentlemen’s Top Option.
The Business
Gentlemen’s Top Option’s competitors are going to be other barbershops in the Burlington, VT area. The top competitors to Gentlemen’s Top Option are The Men’s Room, Main Street Barbers, Indigo, and Bugatti Barbers. The toughest completion would come from Indigo since it is also a full service salon. The difference between Indigo and Gentlemen’s Top Option is that Indigo provides services to both male and female clients while Gentlemen’s Top Option caters exclusively to male clients. Gentlemen’s Top Option differs from the rest of its competitors because in addition to regular barber services (i.e. cutting hair, dying hair, and offering shaves) Gentlemen’s Top Option also offers massages and personal hair removal. According to the latest census number the current population of males age 18 and over is around 40 percent of the Burlington, VT population. This makes up the market size since the target consumer are males in the Burlington, VT area and males age 18 and over are more likely be willing to pay for male grooming services. Areas that would require in depth due diligence
With a new business there would be a period of building when more funds would be need until the customer base was large enough to sustain the business and provide a profit. Another reason to purchase Gentlemen’s Top Option is the fact that it is already staffed with experienced professionals who have been working together for an extended period of time and know what is expected of them. When starting a new business there is a chance during the hiring process that the employee hired may not be a good fit for the company. A third advantage to purchasing Gentlemen’s Top Option is because male grooming is a growing industry. In 2014 GCI reported that make up companies such as L’Oreal and BB were experimenting with products designed for men to add to the male grooming industry (Walker, 2014). Axe has also recently developed new products for males who want to go further than basic personal hygiene (Axe, 2015). The major disadvantage to purchasing Gentlemen’s Top Option is that any negative perception that exists with the company would carry over. If I was to start a new business in the same industry I would have an opportunity to build the reputation of the business from the beginning.
Conclusion
Gentlemen’s Top Option is a one of a kind establishment in the Burlington, VT area which is ahead