Gentleman Inc.: "Make Your Way"

GENTLEMAN INC.
INC.
Make Your Way

Prepared By:
Heather Tomkinson
Erin Hurley
Rebekah Leger
Chris Gartlan
Mike Sattler
Contact:
Heather Tomkinson
Box #2550 Babson College
Babson Park, MA 02457
htomkinson@babson.edu
This business plan is intended solely for informational purposes to assist you in determining if you wish to
proceed with a due diligence investigation of this project. The information is believed to be reliable, but
the design team makes no representations or warranties with respect to the information. The projections
represent estimates based on extensive research and assumptions are considered reasonable, but are not
guaranteed. The contents are confidential and are not to be reproduced without express written consent
Table of Contents
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
Executive Summary 1
Company Overview
2.1
Company Description (including products and services). 4
2.2
History and Current Status.... 4
2.3
Competitive Advantages 5
2.4
Entry, Growth and Exit Strategy5
2.4.1
Entry Strategy.. 5
2.4.2
Growth Strategy.. 5
2.4.3
Exit Strategy.6
Industry, Marketplace and Competitor Analysis
3.1
Industry Analysis. 7
3.1.1
Trends.. 8
3.2
Marketplace Analysis.. 9
3.3
Competitor Analysis.. 12
Marketing Plan
4.1
Target Market Strategy.16
4.2
Product / Service Strategy.. 17
4.3
Pricing Strategy. 18
4.4
Distribution Strategy. 18
4.5
Advertising and Promotion Strategy
4.5.1
Stage One.. 19
4.5.2
Stage Two.. 19
4.5.3
Stage Three... 20
4.5.4
Stage Four. 20
4.6
Sales Strategy.. 21
4.7
Marketing Financials
4.7.1
Sales and Revenue Forecasts.. 21
4.7.2
Marketing Expenses 22
Operations Plan
5.1
Operations Strategy. 23
5.2
Scope of Operations. 23
5.3
Ongoing Operations. 25
5.4
Operations Expenses.. 25
Development Plan
6.1
Development Strategy. 26
6.2
Development Timeline .27
6.3
Development Expenses.. 28
Management
7.1
Management Team.. 29
Critical Risks and Contingency Plans
8.1
Internal 30
8.2
External.. 30
Financial Plan
9.1
Financial Assumptions 32
9.2
Financial Forecasts. 32
9.3
Break Even and Return on Investment. 33
9.4
Financial Statements
9.4.1
Financial Assumptions.34
9.4.2
Statement of Start Up Costs 35
9.4.3
First Year Income Statement.. 36
9.4.4
First Year Statement of Cash Flows. 37
9.4.5
Year Two Income Statement and Statement of Cash Flows. 38
9.4.6
Year Three Five Income Statements and Statement of Cash Flows 39
9.4.7
Years One Five Balance Sheets.40
Appendices.41
GENTLEMAN INC.
1.0 Executive Summary
Business Opportunity
Gentleman Inc is a male oriented salon that serves the growing metrosexual population;
a population characterized as affluent, young, urban males with money to spend on
image and appearance. The corporate minded business man must dress for success in
this fast paced world where personal appearance and first impressions are essential to
compete1. Male spending patterns support this trend, as they currently represent 49% of
the total U.S. spending on haircuts and other personal care services 2 and 29% of spa
clients nationwide.3 With 560,000 males currently purchasing grooming products and
360,000 males with high income and executive positions4, the Boston market provides
an incredible opportunity to serve the personal care needs of these increasingly imageconscious and underserved men.
Traditional spas are oriented towards women, yet primary market research indicates that
men do not feel comfortable frequenting these locations. In the metropolitan areas of
New York and Denver, male salons have been successfully established. Gentlemen Inc.,
being the first male-oriented salon and spa located in the Boston financial district, will be
able to achieve first mover advantage into an untapped niche market.
Company Overview and Service Description
Gentleman Inc. offers a plethora of high quality, male-oriented services and products
provided in one comfortable, convenient location in the financial district of Boston. While
traditional salons and spas target females, Gentleman Inc. caters to the increasing
demands of the male market to eliminate the discomfort or embarrassment that deters
potential male customers from current establishments.
Gentleman Inc. provides services in the salon and spa categories. Salon services
provide hair care, including cutting, styling, coloring and growth treatments. To
supplement these services, hair products will be sold through a retail section of the salon
through personal selling by stylists. The spa treatments, which are less traditional for
male customers, include nail care, skin care, and massage therapy. Nail care services
involve basic manicures and pedicures for the professional males seeking a well
groomed appearance. In terms of skin care, professional estheticians will provide waxing
for hair removal and facials for stress relief and skin conditioning. No spa would be
complete without the full body massage, which offers necessary stress relief for the busy
corporate male.
Customer service is of utmost priority at Gentleman Inc. A comfortable, masculine
atmosphere is established through an old-world style lounge with leather couches and
wooden floors. Additional services to complete this relaxing ambiance include a mini-bar,
traditional shoe shines and hot shaves, and televisions tuned into sports and business
news.
Madison, Gail. Proper Appearance is Serious Business. The Philadelphia Inquirer. 2/1/2004.
MarketResearch.com Academic. Beauty Salons. 4/1/1997.
3
The ISPA 2003 Spa-Goer Study. http://spas.about.com/library/weekly/aa072503ispastudy1.htm. 9/26/2003.
4
Scarborough Data. Release 1 & 2, 2002, NY: Arbitron Qualitap Software, v. 9.0, 2002.
2
PAGE - 1 -
GENTLEMAN INC.
Industry Overview
Gentleman Inc. operates in the personal care industry, which is segmented by hair care,
nail care, skin care, and massage therapy. This overall industry is highly competitive and
extremely fragmented due to over 200,000 undifferentiated establishments throughout
the U.S.5 With many competitors, customers have significant bargaining power and
choose a salon/spa based on location and quality of services. Gentlemen Inc. also
competes in the grooming products industry, which is significantly more attractive for
salons because they employ intense personal selling tactics through the close stylist to
customer relationships. This success is evidenced by increasing sales of professional
grooming products in salons from $2.5 billion in 1995 to $3.2 billion in 2000.6 However,
in order to succeed in this increasingly unattractive general personal care industry, it is
necessary to differentiate by focusing on niche markets.
Marketplace and Target Market
Within the Boston area, a large number of female oriented competitors exist on Newbury
Street that are increasingly serving a male clientele. Due to the growing metrosexual
trend in the market, Gentleman Inc. will enter this marketplace as the first exclusivelymale salon that offers convenience, quality, and a unique atmosphere to a portion of the
male population. Gentleman Inc. will target the professional business males, aged 2040, with a high disposable income of at least $50,000 per year. Based on the population
statistics of the Boston area, the company will have an initial target market of
approximately 140,000 males who currently purchase personal care services. However,
through education, there is a significant opportunity to reach the 360,000 male
consumers7 within the targeted demographics who are not currently aware of the
availability of these male services. Overall the Boston market presents significant
potential for Gentleman Inc. to take advantage of the current dissatisfaction and specific
needs of this emerging market.
Competitive Advantage
Although the basic services and products provided are not entirely unique, the
combination of convenience, quality, and atmosphere provide a significant competitive
advantage. While many males are currently being served by unisex salons on Newbury
Street, an easily accessible location in the financial district is essential to reach these
busy corporate males. The masculine environment will be focused on high service
quality and offer men the major benefit of enhancing their image through a comfortable
experience at Gentlemen Inc. The image of the company as the first all male salon in
Boston will provide a high status, masculine appeal that is not presently being offered
through predominately female salons and spas. The old world library atmosphere
provides men with the surroundings that enhance camaraderie and relaxation. The
concept of customer service catering completely to each male client in this classy yet
comfortable environment provides an unprecedented personal experience that will entice
men to become loyal customers of Gentleman Inc.
RDS TableBase. US Retail Landscape Expands in Some Aspects, Contracts in Others. Research Alert,
January2003.
6
RDS Bizsuite. The Mane Event. American Demographics. Rebecca Gardyn. Feb 2001
7
PAGE - 2 -
GENTLEMAN INC.
Business Model
Gentleman Inc. will generate revenue from services provided and retail sales. The initial
start - up costs require $513,000, due to the equipment purchases and renovations to
the business space. Operating costs are represented by industry averages of salons and
spas, mostly targeting females, since male specific salons and spas are still emerging.
Gross Margins are 50% of revenues due to the commission to skilled professionals and
the cost of sales on retail products. The table shows projected revenues, margins,
operating expenses, net profit and cash flow for years one through five.
Sales
Gross
Margin
Operating
Expenses
Net Profit
Cash Flow
Year 1
489,357
Year 2
1,133,408
Year 3
1,802,208
Year 4
2,853,285
Year 5
3,036,232
244,679
566,704
901,104
1,426,642
1,518,116
436,675
420,279
480,471
575,068
591,533
(192,206)
87,794
102,498
260,292
294,443
624,735
596,102
1,290,838
648,608
2,009,446
Funding
The founders of the company will be contributing their personal savings as well as
utilizing personal loans to raise funds for the establishment and development of the
company. Gentleman Inc. is seeking $600,000 in business loans at 10% interest for
twenty years. This will cover all start up costs as well as provide some flexibility with
cash flows during the first year of operation
Management
Heather Tomkinson She is currently pursuing a Bachelor of Science degree in
Business Management from Babson College. She recently worked at a large
international corporation developing and conducting a market research plan for a new
product being introduced into a mature market. She provided the vision for the business.
Chris Gartlan He currently holds the Director of Marketing position at The Battlegreen
Inn and Suites while concurrently pursuing his Bachelor of Science in Business
Management from Babson College. He also gained operations experience while holding
the position of Warehouse Manager.
Erin Hurley Surrounded by this industry beginning at a young age, Erin has valuable
knowledge about beauty salons and spas. She currently is pursuing a Bachelor of
Science in Business Management. She has experience working in a small start-up
developing sales publication and also assisting in other marketing operations.
Rebekah Leger Her quality people skills have created connections with other
entrepreneurs developing businesses in the spa industry. A background of customer
service in many industries provides unique input. She also is currently pursuing a
Bachelor of Science in Business Management.
Mike Sattler With strengths in both finance and strategy, Mike adds valuable
knowledge to the group. He gained the experience not only while pursuing his Bachelor
of Science in Business Management from Babson College but also while working for
Wachovia Securities for 3 years.
In addition to the team above, Gentlemen, Inc will form an advisory board of experienced
professionals that can give the management team guidance through the ventures early
stages.
PAGE - 3 -
GENTLEMAN INC.
2.0 Company Overview
2.1 Company Description
Walking through the door, the smell of leather and wood creates a
sense of elegance and masculinity. A young woman encourages you
to sit, relax and enjoy a drink while your spa services are being
prepared. The space makes you forget the traffic and projects
awaiting you upon your, exit. Simply enjoy the retreat; the focus is on
you. Then walk down a richly painted hallway into a simple, yet
indulging room and relax on the table. Soft towels and cushions
surround you as you sink deeper into relaxation. Fingers start to
massage your back, leaving the stress of the day behind. When the
visit is finished you feel invigorated and ready to tackle anything the
world can throw at you.
Gentleman Inc. is a male salon and spa that offers services within both the spa and
salon categories but within an atmosphere that is comfortable and relaxing for the male
customer. The following lists the type of services and products provided by Gentleman
Inc.
Hair: shampoo, hair cut, styling, coloring, highlights, growth treatments
Nails: manicure, pedicure
Skin: essential facials
Waxing: eyebrow, body
Massage: back, full body, scalp, neck
Grooming Products: shampoo, conditioner, gel, moisturizer, shaving cream and
supplies, facial cleansers
Offering these select services especially to males is unique in the Boston area. Better
yet, Gentleman Inc. offers an atmosphere that allows males to be comfortable to take
advantage of these services. A customer walks into an old world library sitting room
that acts as the waiting room and also a place for relaxation and conversation.
Decorated with detailed dark woods and leather helps create this masculine elegance.
Literature such as The Wall Street Journal, Business Week and even Sports Illustrated
provide males with reading material that goes beyond what celebrity was wearing what.
In addition to reading material for men, high definition, flat screen televisions will be
located throughout the salon and spa tuned to business and sports news, or anything
else that a man wants. A small bar provides drinks for the customers who want to relax
not only with a massage but with class. Also within the reception area, shoe shines and
hot shaves are available for the male who wants to give the best impression with the
smallest details. Gentleman Inc. not only provides the assistance to make the best
impression to make your way up the corporate ladder, but also as an escape from the
pressures of every day in an environment that is desirable.
2.2 History and Current Status
Currently, Gentleman Inc. is still in the development stage. Still investigating possible
locations in the Boston financial district, Gentleman Inc. is developing the necessary
systems and processes for operation. The business is also in the process of raising
funds and finding advisors to give Gentleman Inc. the edge in the marketplace in terms
of resources. The opportunity is available, but some development is needed to capitalize
on it for long-term sustainability.
PAGE - 4 -
GENTLEMAN INC.
2.3 Competitive Advantages
Gentleman Inc. offers males the comfort of being in an environment more catered to
their interests. It also provides the camaraderie between males due to the intended
nature of the atmosphere, a mens classy social club. The professional, old-world lounge
allows a male to be comfortable relaxing rather than worrying about who will see him in
the window of the female salon down the street. The services that Gentleman Inc. also
offers provide a competitive advantage over other establishments. Salon and spa
services provide style transformation to give the male customer confidence. Massage
services offer stress relief providing relaxation and through this better work productivity.
Some establishments offer a multitude of services, some of which have no overt
benefits. Gentleman Inc. knows what will appeal to, and benefit, the male customer so
there is no confusion. Gentleman Inc. provides the male customer the opportunity to look
and feel the image of the highest executive with their customer service where the
customer is the center of attention. Individualized customer service based upon
customer databases and information will allow Gentleman Inc. to develop strong
relationships with its customers to sustain loyalty and success. Gentleman Inc. has an
advantage over the hundreds of small competitors because they provide the male
customer what no other salon or spa in the Boston area does: comfort and style.
2.4 Entry, exit, growth strategies
2.4.1 Entry Strategies
Since there are currently no exclusively male salon and spas in the Boston area, the
entry strategy for Gentleman Inc. revolves around creating demand for the services to
males who are already interested. Thus, Gentleman Inc. intends to capitalize on the
publicity generated around the opening of such a business. Also, with the chosen
location within the financial district of Boston, Gentleman Inc. will be convenient for the
males that would gain interest in the business. Through industry trends it is apparent that
the large metropolises are becoming areas for increased male services in the salon and
spa category.
2.4.2 Growth Strategies
With an established client base from males who are already familiar with the Gentleman
Inc.s offerings, it will be necessary to expand by targeting other males that are still
emerging into the male grooming industry. Gentleman Inc. will educate males about the
benefits of its services by emphasizing three different aspects:
!
Quality and uniqueness of services

Gentleman Inc. will differentiate by hiring skilled professionals in all areas of
service. In addition, each professional will undergo continuous training and
updating of knowledge in their respective service area. Training in customer
service for all professionals will also enhance the connection with the client
and create a lasting relationship.
Atmosphere
Rather than finding female oriented magazines and soft pastel colors
throughout the salon and spa, males will feel comfortable surrounded by
leather, dark woods and business and sports programs. To escape the
PAGE - 5 -
GENTLEMAN INC.
pressures of the day, males can relax in the company of their colleagues
while being pampered.
!
Relationship with Community

Gentleman Inc. wants to make males realize the benefits of relaxation and
image. Through developing relationships with surrounding corporations,
Gentleman Inc. plans to enhance any males performance within their
company through convenience and quality. This way they can enjoy the more
intangible things in life such as their family and friends.
2.4.3 Exit Strategy

With the anticipated success of Gentleman Inc., the company plans to consider options
for a buy out to a company with greater resources to create franchising or expansion
options.
PAGE - 6 -
GENTLEMAN INC.
3.0 Industry, Marketplace, and Competitor Analyses
3.1 Industry Analysis
Gentleman Inc. will operate in the Personal Care industry, segmented by hair care, nail
care, skin care, and massage therapy. Since there are no large or major players
dominating the market, this industry is extremely fragmented. The highly competitive and
fragmented nature of this industry is evident through the 200,000+ personal care
establishments in the United States.8
A summary of the Personal Care industry depicted through a Porters Five Forces
analysis, illustrated in the diagram below, indicates that the general industry is extremely
undifferentiated. This is unattractive for potential new entrants because of the limited
power of one small establishment.
Figure 3.1.1 Industry Analysis Using Porters Five Forces Model
Threat of Substitutes
Threat of New Entry
Moderate
High
-home grooming, dermatologists
-low barriers to entry

-low switching costs
Rivalry of Existing Players

High
-undifferentiated
-compete on location and price
Bargaining Power of Suppliers
Bargaining Power of Buyers
Moderate
Moderate to High
-many beauty professionals

-larger grooming product suppliers
-many competitors to choose from
The rivalry among existing players in the industry is very high, as mentioned above, with
over 200,000 current service establishments that basically compete on location and
price. There has been some recent consolidation in the industry, which allows the top
four salon/barber shop chains to have a total of 5.3% market share.9 This consolidation
is a result of the problem of declining profit margins in the industry as a result of rising
insurance costs and taxes. However, due to the small size of these current competitors
overall, barriers to entry are low. There is a moderate threat of substitutes that includes
RDS TableBase. US Retail Landscape Expands in Some Aspects, Contracts in Others. Research Alert, January
2003.
9
MarketResearch.com Academic. Beauty Salons. April 1, 1997.
PAGE - 7 -
GENTLEMAN INC.
personal home grooming and dermatologists/doctors.10 In terms of suppliers, the retail
grooming industry, another industry in which Gentleman Inc. participates, must be
examined. Large manufacturers of these grooming products possess the bargaining
power, making the small, individual retail outlets the price takers. Salons/spas, however,
have the advantage of building relationships with clients and personally recommending
products backed by their professional expertise with significant markup from cost. This
success is evidenced by increasing sales of professional hair products in salons from
$2.5 billion in 1995 to $3.2 billion in 2000.11 The other major suppliers in this industry are
the employees, professionally trained stylists, nail technicians, massage therapists, and
cosmetologists whose salaries and commissions comprise an average of 52% of salon
revenue.12 Thus, it can be concluded that the overall bargaining power of suppliers is
moderate to high. In terms of products, the professional expertise of the stylists allows
the service establishment to retain some power and influence over the customers
purchases. The plethora of competitors and the undifferentiated nature of the industry,
however, allow the customers to possess high bargaining power.
3.1.1 Trends
Through the industry analysis it can be determined that to sustain profitability in this
highly fragmented industry, it is necessary to differentiate by targeting niche markets.
Several current trends present a substantial opportunity to take advantage of the
growing demands of the male personal care market. High levels of stress in todays
society have brought the market toward a well-being trend, established by increasing
health awareness and time pressure. Overall spa facial care and body care are expected
to rise 6.7% and 10.5% per year, respectively.13 This trend has significant impact on the
spa aspect of the industry, which will be considered less of a means of pampering and
more of a health necessity.
The metrosexual, defined as a young man with money to spend, living in or within easy
reach of a metropolis - because that's where all the best shops, clubs, gyms and
hairdressers are14, has emerged in American society. The acceptance of this male
concerned with maintaining his appearance, a previously feminine pursuit, is evident
through the enormous success of the television show Queer Eye for the Straight Guy.
Males currently represent 49% of total U.S. spending on haircuts and other personal
care services due to the fact that they spend more on a per capita basis.15 In addition,
the fact that 29% of spa clients nationwide are men16 quantifies the validity of these
trends and significantly impacts future change toward an increasingly male oriented
atmosphere in the personal care industry.
In light of these trends, Gentleman Inc. has a valuable opportunity to capitalize on the
growing needs of the male market for personal care services. To retain profits and
increase competitive advantage in this generally unattractive and highly competitive
industry, creating a location that is accessible and attractive to these metrosexual,
10
Marketresearch.com. These Days, Day Spas are Much More than Pampering Palaces". Kathryn Santoro. March
1997.
11
RDS Bizsuite. The Mane Event. American Demographics. Rebecca Gardyn. Feb 2001
12
13
RDS Bizsuite. "Spa Facial and Body Care Markets Will Grow in the US as Consumers Seek well-being."
November 2001.
14
Mark Simpson, "Meet the Metrosexual," Salon.com, July 22, 2002.
15
MarketResearch.com Academic. Beauty Salons. 4/1/1997.
16
The ISPA 2003 Spa-Goer Study. http://spas.about.com/library/weekly/aa072503ispastudy1.htm. 9/26/2003.
PAGE - 8 -
GENTLEMAN INC.
stressed, young corporate males will give a salon or spa the distinction to allow
economic sustainability.
3.2 Marketplace Analysis
Gentleman Inc. competes within the male hair care and spa service industry composed
of salons, barber shops, and spas that offer both hair care and spa related services.
Within this industry, Gentleman Inc. will be operating in the greater Boston area
marketplace, more specifically within the financial district of Boston. This specific market
is highly concentrated with corporations and retail stores, many of which include salons
along Newbury Street and surrounding prestige areas. The consumers within this
market consist mainly of business professionals, most of which are male, and for this
purpose, the marketplace may be segmented based on gender, occupation, buying
habits, and income. Gentleman Inc. will be targeting a certain portion of this male
population, and the target market can be broken down as follows:
! Approximately 2.million males presently reside in the greater Boston area (3%
increase from prior year)
560,000 of these have purchased personal grooming products within the
last year.
140,000 have a high disposable income (greater than $50,000) and hold
executive occupations.
This creates an initial target market of approximately 140,000 males within
the greater Boston area who will be interested in Gentleman Inc.s
services.
The secondary market targeted is the uneducated male population that fit the above
demographics of a high disposable income and an executive occupation. This market
can be broken down as follows:
!
17
Approximately 500,000 males have a high disposable income and hold executive
occupations.
- Approximately 360,000 of this represent the secondary market that
Gentleman Inc. will educate and market to.17
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GENTLEMAN INC.
Figure 3.2.1 Breakdown of the Target Market in Boston Area
Based upon primary research conducted by Gentleman Inc., buying decisions of males
within the particular marketplace are motivated by convenience, price of the products,
image of the salon, the variety of services offered, quality, and the atmosphere of the
location.
PAGE - 10 -
GENTLEMAN INC.
Chart 3.2.1 Influential Factors on Buying Decisions
Influential Factors on Buying Decisions
14%
24%
Convenience
Price
Image
24%
Variety of Services
Quality
22%
4%
Atmosphere
12%
As seen in the chart above, the two most dominant factors affecting the decision to buy
are convenience and quality. Opportunities exist if a company can capitalize on these
two factors, along with a differentiation factor of its unique atmosphere (third most
dominant factor).
There are important trends that affect this marketplace. Firstly, the metrosexual trend is
specifically important in the marketplace in which Gentleman Inc. will be operating due to
the fact that Boston is a highly metropolitan area. Many of the men within the financial
district fit into the category of a metrosexual male, for research showed that 100% of
those surveyed indicated that appearance was extremely important in business;
however, there is no existing salon solely for men. Established successful male salons
are located in areas such as New York City and Denver, two cities that display similar
marketplace characteristics as Boston.
Another trend that may affect the marketplace is the increased competition in applying
for jobs in professional careers. Over the past years, it has become increasingly difficult
to get a job, even with a college degree. Employers are beginning to take every aspect
into account when hiring for a specific position, appearance being one of them. Because
the financial district of Boston holds a large number of professional jobs, this trend may
greatly affect the marketplace, causing the consumers and the market to become more
focused on a professional look.
Current companies that service the target market include salons, spas, health clubs, and
barber shops, yet none of them are offering all male services to meet the needs of one
of its biggest market segments (see Table 3.3.1).
Primary research indicated that there is an unmet need in the existing market which is
represented in the chart on the following page.
PAGE - 11 -
GENTLEMAN INC.
Chart 3.2.2 Percent of Possible Customer Interest in Services
% Interest in Services
28%
21%
Manicures
Pedicures
14%
16%
Facials
Skin Conditioning
Waxing
21%
Men desire services such as manicures and pedicures however, only 34% of the men
surveyed actually feel comfortable in a female salon.
Males are dissatisfied with the present offerings of the market, and research showed that
70% are or might be interested in an all male salon. Therefore, an unmet need in the
market place exists, thus providing a great opportunity for Gentleman Inc. to attain first
mover advantage.
3.3 Competitor Analysis
Within the greater Boston area marketplace, competition by spas and salons is very
large as seen by the 638 beauty salons in Boston and the 84 day spas18. Within the
male niche segment however, few competitors exist. For grooming and pampering
services, a customer may utilize haircuts, massages, or even exercise and hot tubs.
While more beauty and health services cater towards women, male customers do
provide revenue from necessity. Four categories of competition exist for Gentleman Inc.
within Boston. Each competitor has their strengths overall as well as weaknesses for
serving the male market.
!
Beauty Salons Direct Competitors

Most of these salons are for both genders alike but a lager percentage of the
customer base is women. The salons offer hip, up to fashion hairstyles at a wide
range of prices. The trend for most of the salons around Boston is best
exemplified by James Joseph Salon on Newbury Street.19 James Joseph targets
young hip men and women who want low priced cuts and colorful service. Their
slogan is if you are looking for a cut thats more cutting edge than others, seek
no further20 Each salon claims to offer a range of treatments and professional
personal attention. Males utilize these businesses for the haircuts with style;
however, they lack the spa services that would allow for relaxation. Many male
18
Salons AND Day Spas +Boston.Verizon super Pages. http://www.superpages.com, Nov. 15, 2003
www.jamesjosephsalon.citysearch.com
20
Best of Boston www.datefinity.com
19
PAGE - 12 -
GENTLEMAN INC.
customers have problems visiting a more female oriented salon due to the fact
that the surroundings may cause embarrassment and discomfort.
!
Day Spas Direct Competitors

Day spas are primarily focused towards women but cater to men as well. One
weakness of a day spa is that most men may feel uncomfortable being in an
environment normally associated with women. Spas may make some men feel
effeminate. Also a day spa takes up a large part of the day, most business men
do not have the time to stay all day for relaxation treatments. Prices at most spas
around Boston are very high. This is a potential weakness due to the maledetermined lower value for a high financial price in addition to the opportunity
cost of time. While interviewing potential customers, Gentleman Inc. found a
large concern was the embarrassment of being seen getting female treatments.
Spas do not openly advertise to male customers, letting them know the benefits
of spa treatments. These businesses also incur little advertising costs due to the
fragmented nature of the industry and tend to shy from mass marketing.
Establishments such as the Giuliano Spa offer similar services however, the
atmosphere is directed towards females, thereby not being a comfortable
atmosphere for the male customer.
Barber Shops Indirect Competitors

Although there are only a few traditional barbershops left in the Boston area they
are still attracting customers who could be coming to Gentleman Inc. Loyalty is a
strong factor in the business of barber shops because most men that frequent
one have been going there for years. Not being up to date on new styles, and not
offering more advanced services such as coloring, etc. is a weakness for these
businesses in the eyes of the progressive professional. Little advertising beyond
word of mouth also represents a weakness of barber shops because they do not
exhibit growth in customer base.
Health and Fitness centers Indirect Competitors

Health fitness centers are a potential competitor for Gentleman Inc. since they
are competing for the customers time as well as his money. There are 15 fitness
centers in Boston.21 The weakness most fitness centers have is they only allow
members to use their facility, which means the customer must pay for a
membership. Most business men dont have the time or energy to get use of a
month or year long membership. Gentleman Inc. will be competing with the
method of relaxation a customer chooses, do they want a massage, or a long run
on a treadmill. Some newer heath centers are also beginning to offer a
masseuse on the premises for their members and so they would be a direct
competitor in this area of the business. Although the two businesses seem
different both are ways to improve a mans image, thus must be considered
competitors.
To entice the male customer away from these substitutes for Gentleman Inc. the
business must offer them what the competitors do not. As shown by the trends in both
the industry and the marketplace, males are beginning to be more aware of their
appearance and its affect on others. As a result, salon visits and spa treatments are
becoming more frequent with the more self-assured individuals. Salons may offer the
style that a man wants and the quality, however a man must be comfortable receiving
21
Fitness Centers +Boston.Verizon super Pages. http://www.superpages.com, Nov. 15, 2003
PAGE - 13 -
GENTLEMAN INC.
the service. To make these actions more acceptable, the environment must be changed.
No other competitor offers a masculine environment. In addition, since the spa treatment
use by men is relatively recent, their hair care is not combined with the spa treatments.
As a result, Gentleman Inc. will be the first to fulfill the need of both the relaxation and
skin care of spa treatments in the same location as their regular hair cut. The location of
the business is also unique, being in the financial district, right next to their work. While
Newbury Street may be convenient, the shopping atmosphere may also inhibit the
comfort for the male customer. With the emerging needs of the urban male increasing,
Gentleman Inc. will provide these services with the convenience not yet served.
Table 3.3.1 Boston Competitor Chart
Type
Service
Hair cut
Hair style
Coloring
Highlights
Growth
treatments
Manicure
Pedicure
Eyebrow -wax
Body-wax
Massage
Retail
Gentleman
Inc.
Salon &
Spa
X
X
X
X
X
X
X
X
X
X
X
James
Joseph
Salon
Salon
Mario
Russo
LA
Splash
Spa
Hair Salon
Liquid
Hair
Studios
Hair
Salon
Hair Salon
Spa
Giuliano
Spa
Salon &
Spa
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
PAGE - 14 -
GENTLEMAN INC.
The Value Proposition below provides a visual look at what male customers currently
want and what is not being provided by our competitors. This leaves a large opportunity
for Gentleman Inc.
Figure 3.3.1 Value Proposition
- Image and Style

- Location
- Variety of Services
- Gentlemans Atmosphere
- Service Quality
Gap in Marketplace
- Location
What Gen.
Inc. Offers
What
Customers
Want
What
Competitors
Offer
- Image and Style

- Location
- Quality
- Image
- Service Quality
- Low Price
PAGE - 15 -
GENTLEMAN INC.
4.0 Marketing Plan
4.1 Target Market Strategy
Gentleman Inc. will initially be targeting the image-conscious male in Boston. These
males express concern with personal appearance, and range from 20 to 40 years old.
Most importantly, these males currently hold a professional or executive occupation in
the greater Boston area, and make an annual income of over $50,000. The $50,000
income level may seem lower compared to living expenses, however a single male
interested in advancing his career will be concerned with his appearance. Therefore,
these single males would be interested in services beyond the basic haircut. With this
description, Gentleman Inc. would target roughly 140,000 prospective males within the
area. Through first mover advantage Gentleman Inc will gain access to a broader range
of males who fit the characteristics of the original target market with regards to age,
income, and professional occupation, but who may not initially be interested in personal
appearance or knowledgeable about the services available to them. Gentleman Inc.
plans to tap into this greater market through education strategies to increase awareness
about their services and the benefits of them. In doing this, Gentleman Inc. creates a
potential target market of 360,000 males over time, hoping to capture 1% of the $450
million in salon revenues within the first 5 years of operation (based upon the conclusion
that revenues will not exceed $2 million during these early stages of high expenditures
and market penetration).
Through its unique and comfortable atmosphere, location, and variety of products and
services Gentleman Inc. will be fulfilling a great need in the market. To assess the
market demand for Gentleman Inc., primary market research was conducted on males
that fit the characteristics of the target market. Based on this market research, 100% of
the potential customers surveyed said that appearance in business is of great
importance. Gentleman Inc., through its variety of products and services, will fulfill the
desire to look and feel good, catering to the need within the target market. Although
other competitors may also fulfill the need for style and image, they do not offer all
necessities in one location. Convenience, which 86% of the potential customers
expressed as very important, will also be created. Because Gentleman Inc. will be
located in the financial district of Boston and will offer a variety of services in one
location, it will be meeting the need for convenience. In addition to this, the times of
operation cater to the most convenient times expressed by our potential customers,
opening early in the morning and closing in the evening following work hours. Lastly and
most importantly, Gentleman Inc. will be creating a comfortable atmosphere solely for
men that no other salon in Boston offers at this time. Traditionally, our target customers
are visiting salons and receiving services in a female-oriented environment. While many
of the potential customers expressed interested in salon and spa services, only 34%
said they feel comfortable in a female salon. Gentleman Inc. will capitalize on this
discomfort and comfort these previously neglected males by emphasizing a masculine
environment not previously provided.
Not only will Gentleman Inc. be building upon unmet needs, but primary data indicates
that customers are interested in the idea of the business. Twenty-eight percent of those
surveyed would be interested in a male salon, and 42% said they might be interested.
These percentages must be considered within the place of the overall market. This niche
market is still emerging, thus, with a quarter of potential target market customers
interested room for growth is evident. This also solidifies the necessity for education
PAGE - 16 -
GENTLEMAN INC.
within our advertising. While the services may not have been a determining factor due to
their emerging popularity, another aspect of the business represented greater
importance. With the exception of hair care, over 50% of surveyed potential customers
prefer a female performing their services. Gentleman Inc. will capitalize on this demand,
and will create a comfortable environment developed solely for the male population
4.2 Product / Service Strategy
Due to its image and atmosphere, Gentleman Inc. is positioning itself as the top,
exclusive male salon / spa within the greater Boston Area. No competitors, from health
clubs to female salons, offer the variety and range of services that Gentleman Inc. offers,
nor will they have the elite staff that the company will develop and train. In addition to
this, there is no other similar service presently offered in this area, allowing Gentleman
Inc. to move into this developing industry segment and target this untapped market.
Presently, female salons offer hair cutting, styling, and coloring, and barbershops offer
hair cutting and maybe styling. 36% of those surveyed receive their hair cut in a salon,
yet only 34% felt comfortable. Gentleman Inc. will be combining these two ideas, one of
which is more prestige than the other, to create a completely male oriented environment
to cater to the demand of good service and variety of service in a comfortable
atmosphere. Gentleman Inc. will differentiate through the unique combination of salon
services and the comfortable atmosphere and image it will create
In addition to the salon services that Gentlemans Inc. will be offering are the spa
services. The spa services fall into three categories: nail care, skin care, and massage
therapy. Within the category of nail care are the manicures and pedicures. As revealed
through customer analysis, there is a demand for these services. Approximately 25% of
those surveyed expressed interest in nail care. However, not many people receive these
services for several reasons: the atmosphere of the location where target customers
currently need to receive these services; the image it portrays in the current market; and,
the lack of knowledge about these services. Customer interviews revealed that many
customers do not know what the service is or its benefit. Following an explanation,
potential customers expressed interest. For example, many men were willing to try
facials when educated as to their benefits, and massage therapy was also an option if it
was convenient. Therefore, with education and advertising, Gentleman Inc. believes that
spa services could provide a large revenue driver.
Presently, there are many existing salons along Newbury Street of Boston, yet there is
not any existing salon that caters solely to the male customer. Therefore, Gentleman Inc.
will be offering a service that no other business presently offers, leaving no direct
competitors in the area. However, health clubs, existing salons, and massage therapy
locations will be competition, for which Gentleman Inc. will stress its convenience,
service, and comfortable atmosphere as a competitive advantage. Switching costs are
expected to be moderate, for Gentleman Inc. plans to immediately establish excellent
customer relationships, promotions, and service to replace and enhance the experience
for customers.
A risk of imitation salons once Gentleman Inc. is established exists. While competitors
can enter the market, by the time one is created Gentleman Inc. will already have an
existing share of the market and a loyal customer base. Through the comfortable
atmosphere, customer service and the professional service providers, Gentleman Inc.
will work to create this loyalty among our customers. Inadequate customer service within
PAGE - 17 -
GENTLEMAN INC.
these smaller imitation salons will allow for Gentleman Inc. to continue its growth and
sustain profitability.
4.3 Pricing Strategy
Gentleman Inc.s pricing strategy will be above that of our competitors such as James
Josephs, although Gentleman Inc. does not have any exact competitors in the greater
Boston area. Gentleman Inc. will be pricing its products and services at premium prices
to create an image of high quality and prestige, which will fit with the overall atmosphere
of the offering. With competition pricing strategies based upon the service provided and
the quality of said service to the customer, it is important for Gentleman Inc. to get the
best employees of the highest quality so that it is able to reasonably charge prestige
prices. Gentleman Inc. is able to do this due to its prime location, the quality of
surrounding stores and restaurants, and the disposable income of potential customers,
and the overall atmosphere and setting of the location itself. A premium pricing strategy
supports the image and reputation that Gentleman Inc. is setting out to achieve as the
prestigious up-scale salon and spa created for Bostons established male audience.
4.4 Distribution Strategy
Essentially, Gentleman Inc.s distribution strategy begins through a central retail location
located in the financial district of Boston that is easily accessible to its target market as
well as potential new customers. It will be offering its services from 5:30am until 7:30pm,
Monday through Friday, meeting the needs and availability of customers with busy work
schedules. Due to the fact that one of its major offerings is convenience, this strategy is
essential for distributing the products and services in a way in which they are easily
accessible and available to the target market. Through offering a variety of services in a
convenient location where most of the target customers are located, Gentleman Inc.
plans on attracting and maintaining repeat customers on a weekly and monthly basis.
With regards to the specific distribution of its products and services, Gentleman Inc.
plans to offer its services in separate rooms located throughout the location. Hair
services will be offered in one room, manicures and pedicures in another, massages in a
separate room, and facials in another. In doing this, the company will not only be
encouraging men to receive these services in a safe location that they may otherwise
reject, but it will be offering them in the privacy that they desire as proven through
customer analysis. The specific retail grooming products, such as shampoo and facial
lotions, will be distributed on glass shelves that are directly visible when a customer
walks in. Through high visibility and easy accessibility, Gentleman Inc. will promote the
purchasing of the products it offers.
4.5 Advertising and Promotion Strategy
Promotions for Gentleman Inc. will occur in three stages:
! Stage One will occur prior to opening Gentleman Inc. and will focus on educating
the consumer market that such an establishment is going to be in place.
!
Stage Two will occur simultaneously to the grand opening and through the first
six months and will be focusing on a series of new promotions that will tap into
the target market in the hope of establishing a customer base.
PAGE - 18 -
GENTLEMAN INC.
!
Stage Three will be phased in after Gentleman Inc. has been operating for
approximately six months and will focus on continuous advertising as well as the
introduction of a new wave of promotions.
Stage Four will be implemented once the company is established and will revolve
around educating the larger, potentially untapped market of men in the Boston
area. During this final stage continuous efforts will be made to maintain present
customers satisfaction and loyalty to Gentleman Inc.
4.5.1 Stage One

Gentleman Inc. will reach out to the entire greater Boston market to announce its arrival
to the city. To gain publicity for being the first male oriented salon and spa in the Boston
area, soliciting of local area written publications will help create a buzz around the
opening. In addition, publicity through television clips by local stations that highlight this
national trend along with radio interviews with management will hopefully educate and
inform the target market about Gentleman Inc. Several other businesses with a similar
model have opened in other cities and have received a great deal of recognition and
interest in the media. Gentleman Inc. expects to receive the same attention.
Advertising will be relatively simplistic in an attempt to bring Gentleman Inc. into the eyes
of the consumers of the Boston area. Brochures will be distributed in selected hot spots
such as Newbury Street and other locations of the financial district to attract potential
customers. These brochures will contain a 10% discount for the first week following
Gentleman Inc.s grand opening.
4.5.2 Stage Two
Stage two promotions include a mix of advertising and alliances. First, Gentleman Inc.
plans on forming alliances and establishing relationships with the large surrounding
corporations in the area. A manager of Gentleman Inc. will begin to establish
relationships with possible future customers through visiting corporations and trying
educate upper management. They will be creating and offering corporation packages in
which they will sell directly to the head of the corporation, rather than focusing on
individual sales to the employees. This plan works in that the corporation will purchase a
certain amount of services per employee per month as part of the employees
compensation package. For example, the corporation will pay a certain fee per month so
that its 500 employees can get their hair cut and their nails done twice a month, with the
employee responsible for setting up an appointment. Through these alliances,
Gentleman Inc. will be able to establish important relationships with customers, as well
as receive a guaranteed payment up front. In addition to this, the corporations that form
alliances with Gentleman Inc. will be promoting the idea of looking good by creating a
prestige look for the company as a whole.
A second promotion strategy that will be implemented simultaneously to alliances is the
referral plan. The referral plan is a major form of advertising for Gentleman Inc. that will
get potential customers to try the services. Every first-time customer to Gentleman Inc.
who receives a service over $50 dollars will be given 10 distribution cards. These 10
cards may then be distributed to friends, family, co-workers, etc., and for every new
customer that presents the card with the name of the referral, the referrer then receives
a $10 dollar gift certificate. In addition to this, the first-time customer referred receives a
free manicure if he purchases $50 dollars worth of products and services. This strategy
PAGE - 19 -
GENTLEMAN INC.
allows the original customer to receive as much as $100 dollars worth of free services,
as well as allows the new customer to try one of the less obvious services, the manicure.
This will not only promote some of the less traditional services, but also allows
Gentleman Inc. to broaden its customer base.
Lastly, as part of stage two, Gentleman Inc. will be mailing out brochures to surrounding
businesses, restaurants, fitness centers, and corporations.
4.5.3 Stage Three
Stage three promotions focuses on attracting the potential target customer with a high
disposable income through advertising in prestigious places. In addition to this,
Gentleman Inc. plans to achieve high visibility through forming alliances with locations
that share similar visions, which will help it establish itself as a prestige location. The
below promotions are planned to be implemented after one year of operation, and are
expected to run for a year
Stage three of promotion involves the creation of strategic alliances with surrounding
prestige shops, restaurants, retail stores, and gyms in the greater Boston area.
Gentleman Inc. plans on establishing relationships with surrounding businesses so that
they can develop mutually beneficial promotions based on spending. For example, for
every $100-500 dollars that a customer spends in a particular alliance location (the
amount is dependant on the prices of the store or restaurant), the customer will receive a
5% to 25% off their first visit to Gentleman, Inc. If a customer spends $100 at Neiman
Marcus, then he will receive a 5% discount by bringing the receipt to Gentleman, Inc. If
he spends $500 or more, then he will receive up to 25% off his desired services at
Gentleman, Inc. (amounts may vary depending on prestige of location). In return for this
promotion, Gentleman Inc. will offer the upper management personnel of each particular
location monthly visits for a year. In addition to this, each alliance will be allowed to
advertise their location through desired means at Gentleman Inc. Gentleman Inc. will
further be creating a similar agreement with surrounding Boston fitness centers and
health clubs. For every new male member joining the particular health club, he will
receive a discounted hair cut at Gentleman, Inc.
Stage three promotions also include advertising to women, who influence the purchases
of their male counterparts. Gentleman Inc. will be advertising through women salons and
shops encouraging them to purchase a gift their significant other will love. The
company will offer holiday and birthday packages that women can purchase for their
husbands or boyfriends, one of which is a combination of the Massage, Manicure,
Pedicure, and facial for a set amount. (This package was designed so that men will be
encouraged to try services that they may not be normally willing to try.) In addition to
this, for every new women member joining a health or fitness club, Gentleman Inc. will
offer 10% off their first purchase of a package gift certificate at Gentleman, Inc.
4.5.4 Stage Four
Stage four promotions focus on expanding the customer base and target market of
Gentleman Inc. through advertising, publicity, branding through sports sponsorship, and
education to customers. Stage four is mainly focused on educating potential customers
about the benefits that Gentleman Inc. offers, as well as advertising to other potential
customers not presently identified as the target market.
PAGE - 20 -
GENTLEMAN INC.
Gentleman Inc. plans to establish sports related sponsorships and affiliation with Boston
sports teams. Its plan is to have sponsorship with Boston professional teams: Red Sox,
Patriots, Celtics, or Bruins. In return for this sponsorship, each team will receive special
benefits provided by Gentleman Inc. For example, each team roster will have full access
to the facility, pending availability, for two days throughout the month of their off season.
(Gentleman Inc. will close the facility for the scheduled day). Gentleman Inc. is willing to
spend necessary funding on this venture, and also plans to have access to a billboard at
the sport events as well.
Stage four promotions also rely heavily on publicity to establish brand name. Due to first
mover advantage and the trends in the current market place, Gentleman Inc. expects to
receive media attention that will help the company establish its brand name as well as
promote its products and services. Once the target market, as well as others, begins to
recognize the benefits of the product and service, Gentleman Inc. plans on jumping on
every opportunity for publicity through newspaper articles, TV talk shows, TV news
channels, and radio stations, where it hopes to educate potential customers as to
benefits of its offering.
This stage of promotion also largely focuses on education. Gentleman Inc. plans on
creating street teams to go out and educate the greater Boston market as a whole. In
addition to this, the company will begin to offer short term promotions every 3 months
that will run for two to four weeks and that are focused on promoting some of the less
utilized services. For example, if a customer spends over $100 dollars he will receive a
free manicure, over $150 he receives a free pedicure, and over $300 dollars a free
facial. These short term promotions will help customers try new services and will offer a
benefit to its already loyal customers.
4.6 Sales Strategy
Gentleman Inc. plans to sell its services through the unique male-oriented atmosphere
that completely caters to the customer. The receptionist working at the front desk that
answers the phone and greets customers at the door will play a pivotal role in helping
customers make service purchase decisions. A customer database will also provide
personalized information on preferred services, providers or specific needs. This
personal experience provided by the high levels of customer service is an essential
aspect of the sales strategy. Through the quality of service provided from the moment a
customer enters the establishment Gentleman Inc. provides a trusting, comfortable, safe
place to visit. Employees will establish close relationships with customers to the point
where they know their customers by name and preferences. Gentleman Inc. plans to sell
itself through the strength of its quality brand image and the loyalty developed between
customer and employee, ultimately sustaining sales through ensuring return visits from
customers.
4.7 Marketing Financials
4.7.1 Sales and Revenue Forecasts
Although Gentleman Inc. expects a large growth rate due to the industry and
marketplace trends, this must be allocated over the first five years. Gentleman Inc.
assumes that for the first 6 months there will be limited growth in both the number of
client sales and revenue by 10%. For the third quarter of the first year the business
assumes 15% growth rate and then 20% in quarter four. For the second year, a growth
PAGE - 21 -
GENTLEMAN INC.
rate of 40% is assumed. This growth is increasing due to the learning curve which will
increase brand and service awareness through promotional campaigns. For years 3 and
4 a growth rate of 50% is assumed due to the cumulative investment in marketing
expenditures. However in year 5, Gentleman Inc. will reach near capacity and have
limited growth in sales, providing an opportunity for expansion.
Chart 4.7.1.1 Yearly Client (unit) Sales Growth
Sales Growth
100000
80000
Units
60000
Services
40000
Retail
20000
0
Year 1 Year 2 Year 3 Year 4 Year 5
Chart 4.7.1.2 Yearly Revenue Growth
Revenue Growth
3,500,000
3,000,000
2,500,000
2,000,000
$
1,500,000
1,000,000
500,000
Total Revenue
0
Year
1
Year
2
Year
3
Year
4
Year
5
4.7.2 Marketing Expenses

Marketing expenses constituted one of the largest expenses on Gentleman Inc. For the
stage one efforts, a start-up cost of $3,000 is expected. Gentleman Inc. then assumes a
$5,000 a month expense for marketing.
PAGE - 22 -
GENTLEMAN INC.
5.0 Operations Plan
5.1 Operations Strategy
The operations strategy focuses on providing the highest level of quality with the added
value of an entire spectrum of male-oriented services in one comfortable, conveniently
located establishment. Thus, the quality dimension will be emphasized on all levels from
the employee to the customer. Quality must first be accomplished by the suppliers, so
Gentleman Inc. will provide excellent compensation, starting salaries at 50%
commission, above industry standard of 40-45%, as an incentive to attract a standard of
qualified professionals with previous work experience in the field. Due to the high cost to
maintain this quality and to stress the high end value to customers, prices will be
premium for all services. Timeliness will also be provided for customers, with a variety of
salon and spa services provided in one location. Busy corporate males do not need to
drive a far distance before, during lunch break, or after work to receive the services they
need to look and feel great.
5.2 Scope of Operations
Due to the intensely customer involved nature of this business, all services will be
performed in-house. The layout of the salon, illustrated in the diagram below, allows for
an effective use of space that also ensures privacy for individual customers while they
receive services. The front of the store is private, unlike traditional salons, which allow
passerbys to view customers receiving services. The receptionist desk is located in the
front of the main lobby to allow her to greet customers as they enter and receive
payments as they leave. The windows in the front of Gentlemans Inc. display the inviting
old-world style of the lounge and bar area, which will be appealing to men. Doors divide
this comfortable lounge from the services that transform men from ragged and stressed
to well-groomed and relaxed behind the scenes.
The nail room will contain two manicure stations and one enclosed pedicure station, to
provide customers with additional privacy. Customers exiting and entering the multistation hair salon must pass through the retail store, which is conveniently located to
ensure that customers cannot avoid the visual appeal of grooming product promotions.
In addition this allows the expert stylists to direct men to the products used on their hair
during styling, to take advantage of the high value of this type of personal selling. Private
rooms for waxing, facials, and massages ensure the privacy that customers demand
during the performance of such personal services. Storage closets are also located in
the rear of the establishment to hold inventory and wash/dry towels and sheets, which
need to be cleaned on a constant basis.
PAGE - 23 -
GENTLEMAN INC.
Figure 5.2.1 Potential Gentleman Inc. Location Layout
hair
massage
nail
waxing
massage
nail
facial
/ skin
bath
laundry
/ mgmt.
receptionist
retail
store
lounge
tvs
Grooming products will be purchased from manufacturers and distributors with high
quality brand images and then sold at the retail level at Gentleman Inc. It is important to
carry several brands within each product line to be able to customize product
suggestions to meet the demands of individual customers. Thus, relationships will be
established with these vendors to gain some trade allowances for the value added
through personal selling by salon professionals and through displaying the brand names
in the salon/spa. Long term relationships will also be established with suppliers to
arrange bulk ordering of usable supplies such as combs, brushes, foils, coloring dyes,
soap, paper products, nail files, etc. to ensure a reliable supply at the lowest possible
wholesale costs.
All employees of Gentleman Inc. will be females to ensure maximum comfort levels for
the male customers. This need was determined through the primary market research
conducted. The largest number of employees will be the licensed professional
beauticians including hair stylists, nail technicians, estheticians, and massage therapists.
A receptionist will also be hired to answer phone calls, make appointments, and greet
customers. She will need to have previous experience, preferably in a salon
atmosphere, and have excellent interpersonal skills so that she is enthusiastic when
interacting with customers. Cleaning staff is also necessary to maintain the high quality,
sanitary atmosphere and perform services such as sweeping up hair, cleaning the beds,
changing the sheets on the massage and waxing tables, washing towels, and emptying
waste baskets. Bartenders are also necessary to provide beverage services to the
customers in the lounge while they wait for their appointments.
PAGE - 24 -
GENTLEMAN INC.
5.3 Ongoing Operations
To successfully operate on an ongoing basis, Gentlemen Inc. will have to implement
certain processes to ensure that the highest levels of quality and customer service are
maintained. Initially walk-ins will be welcomed since the establishment will not be
operating near capacity due to the learning curve associated with educating the male
market on these services. However, after a customer base is established, appointments
will take precedence and maintaining flawless schedules will be essential. All employees
must agree to a set of employee guidelines that requires scheduled breaks and strict
attendance policies to ensure that the customer demand is met and that no appointment
is cancelled on behalf of Gentleman Inc. Professional beauticians will be obligated to
provide the highest quality of service in the designated time allotted for each
appointment to keep the schedule operating in a timely manner to avoid making the
stressed and busy customers wait. Not only will the employees be enticed to follow
these guidelines through the commission based compensation, but there will also be
incentive for each and every employee to provide the customers with friendly and quality
service through the customary tips based on performance associated with this
profession.
It is also necessary to implement an efficient customer database to provide a maximum
quality of customer service unprecedented by competitors. This database will utilize
software that files information about each customer including contact information and
personal preferences such as past services provided, amount of money spent, amount
of time spent at salon, products purchased, preferred stylist, and favorite beverage.
There will be a fixed cost associated with the technology required for this database and
the ongoing operation will be administered after initial training by the receptionist.
5.4 Operations Expenses
Employee compensation will constitute the largest operating expense. This
compensation is commission based; therefore it will be a consistent 50% of sales
revenue for the services performed by all professional personal care service providers.
The cleaning staff, receptionist and bartender will each receive steady wages based on
hours worked rather than commission. Cleaning staff and receptionist will be paid $10
and hour, while the bartender will receive $8 per hour because of the potential for tips
from customers.
Supplies that are used for services, mentioned above, also account for operating
expenses equivalent to 8% of revenue22. This cost is driven by the amount of services
provided, as they determine the total amount of supplies used. Grooming products that
are purchased at wholesale value comprise another operating expense that is constantly
replenished by the marked up retail products
Rent and utilities are fixed costs, $5,500 and $1,200 per month respectively, and are
based on current market average rates. Insurance expense is a variable 1% of
revenue23. Marketing expense will be maintained at a constant $5,000 per month to
maintain the education strategy, as well as to carry out various promotions and
continuous market research.
22
23

Personal Services including Hair Salons. http://www.bizstats.com/personal.htm, Nov. 28, 2003.
PAGE - 25 -
GENTLEMAN INC.
6.0 Development Plan
6.1 Development Strategy
To capitalize on the opportunity within the male salon and spa segment, there are
several factors which need to be developed for sustainable success. The key success
factors are:
! Location: A key location is important because Gentleman Inc. needs to be
convenient and accessible to our target market in order for them to utilize the
services. With customers busy schedules, they will not venture far to come to
Gentleman Inc.
- Within Gentleman Inc.s development, the search for the location is crucial
and so as much time as necessary will be spent on its determination.
!
Convenience: Location is part of the convenience, however, offering desired

services in one location with extended business hours in order for business after
the normal work day also is considered.
- The convenience depends on creating the systems and processes needed to
dictate the professionals working hours. The computer system implemented
will also increase convenience through the appointment scheduling without
error to disrupt a customers schedule.
Atmosphere: Most males do not feel comfortable in a female salon, not only
because of the normal clientele, but also the more feminine surroundings. To
make the male customers more comfortable the environment and atmosphere is
essential.
- The internal design and construction of the atmosphere will help create the
desired environment. In addition, choosing quality materials and hiring
personable staff will enhance the design of the business space.
Reputation: Image and style are important, but the quality more so with males
who are trying to impress. Gentleman Inc. needs to create a reputation for high
quality services with excellent customer loyalty. Developing relationships with
customers allows for this development much quicker.
- Reputation is based upon service quality and execution. Our hiring of
professionals that are personable and skilled will allow for this factor to be
fulfilled. Superior customer service will also create the positive status for the
success of Gentleman Inc. This service will be perpetuated with the
equipment and training of employees. The customer data system will allow
for personalized customer service and the attention that any man would want.
Advertising: As mentioned in the Marketing Plan, advertising is crucial to the

success of Gentleman Inc. While some males may be eager for the services, the
majority of the target market will need information to see the benefits of the
business.
- Pre-opening promotions and advertising will create the demand and interest
needed to develop long-term loyalty with the other attributes of Gentleman
Inc.
PAGE - 26 -
GENTLEMAN INC.
6.2 Development Timeline
Although a great deal of planning has created the business plan for Gentleman Inc.,
actual delivery and execution is crucial. With the operations plan, delivering quality
services to the customer can be achieved, but Gentleman Inc. must bring together
certain factors to be operational.
The first major milestone that Gentleman Inc. must overcome is finding an acceptable
business space in the downtown Boston area. Due to the special requirements and
location necessity, it could take anywhere from days to months to find the space. As a
result, the development timeline initiates with this in mind. With the acceptable business
space found, Gentleman Inc. plans to hire an attorney to not only secure the business
space but also start looking at the proper paperwork and licensing needed for
Gentleman Inc. The business must then secure the business space to make sure that
the model will become a reality.
Since a structure and organization will need to be decided upon, along with an attorney,
an accountant will be hired. Each legal structure offers organizational options which are
appropriate for different personal situations and which affect tax and liability issues.24
The intricacies are difficult to understand and require someone with a larger knowledge
base than the management. Other bureaucratic processes need to be handled such as
business incorporation, business licensing, salon and spa licensing and trade name
registration. A liquor license will also need to be acquired which is a lengthier process,
requiring around two months. These processes require start dates past the beginning of
the business space construction so that the business is actually in progress but need to
be completed prior to other processes like hiring and training.
With the business space secured, renovations will be made to the building. Because of
the unique atmosphere and design of the business, renovations could be extensive. This
is a critical part of the business. One of the competitive advantages of Gentleman Inc. is
the atmosphere that is catered towards the male customer with the old world library
style. During this same time, suppliers of the salon and spa equipment as well as retail
products and products for salon use will need to be determined. While the renovations
continue, the management of Gentleman Inc. will finish developing the systems and
processes required for operations. Also, the operating equipment and point of sale
devices will be found and ordered during this time. Before the renovations are
completed, Gentleman Inc. will have the opportunity to begin hiring its professionals
since the business needs time to ensure that applicants have the required experience
and expertise. Once some hiring is completed, training on the determined systems and
processes will be executed. Upon inspection of the building with all these tasks
completed, Gentleman Inc. will be ready for operation.
24
Starting a Business. http://www.sba.gov/starting_business/startup/guide4.html, Nov. 15, 2003.
PAGE - 27 -
GENTLEMAN INC.
Table 6.1.1 Development Timeline*
Action
Week
Hire Attorney
Secure Business Space
Hire Architect
Internal Design Plans
Created
Building Materials Chosen
Hire Accountant
Renovations to Space
Choose product suppliers
Contracts with Suppliers
Create Systems and
Processes
Hiring Professionals
Training
Design and Produce
Signage
Purchase Office Equipment
Salon and Building
Inspections
Pre-start-up Promotions
Business Incorporation**
Business Licensing**
Occupancy Licensing**
Trade Name Registration**
Liquor Licensing
Phase 1
1 2 3 4
Phase 2
Phase 3
7 8 9 10 11 12 13 14 15 16
* All estimations following the finding of acceptable business space

** Government processes take 30 days
6.3 Development Expenses
Several large investments are required to complete the process of opening Gentleman
Inc. The two most important costs come from equipment and renovation cost. In order to
purchase the salon and spa equipment as well as any technology, $200,000 will be
spent. For renovations of the building including privatizing the rooms for services and the
creation of the lounge atmosphere with leather and dark woods will require an
investment of $200,000. To design the space an architect and internal design must be
utilized for $2,000. There are other costs, but these are the fees for the business
processes, which do not need a large investment.
PAGE - 28 -
GENTLEMAN INC.
7.0 Management
7.1 Management Team
Heather Tomkinson - Currently pursuing a Bachelor of Science degree in Business
Management from Babson College. She has worked at Orange, a large international
corporation developing and conducting a market research plan for a new product being
introduced into a mature market. Past laboratory experience provides the basis for the
attention to detail and organization required for running a business. Strong
communication skills allow her to interact with both investors and advisors to bring
success to Gentleman Inc.
Christopher Gartlan Currently working as the Marketing Director of an independent
hotel in Lexington, MA. During this time Christopher has launched a successful discount
program that offers all guests of the hotel savings at 18 of the local area merchants.
Also, he will be co-hosting a series of Open Houses for Lexingtons corporate companies
with the management of the hotel. He is presently pursuing the Bachelor of Science in
Business Management from Babson College. Planned graduation is this spring of 2004,
when he hopes to establish the New England market for a direct advertising company,
Compass Cards that is presently based solely in Texas. Previous work experience as a
Warehouse Manager lends a foundation for operations within a small collectables
company.
Erin Hurley With immediate family working as licensed professionals in salons /spas,
she has personal connections and access to the personal care industry. Currently
working in the Admissions Office at Babson College, she has job experience in the
Marketing and Human Resources fields. This knowledge and experience interviewing
candidates and promoting the Babson brand will provide a valuable asset to the
Gentleman Inc. management team in the hiring decisions and ongoing employee
relations. In addition, she has experience working on the development of a small-start up
company, where she created sales/marketing publications. Erin is currently pursuing a
Bachelor of Science in Business Management at Babson College.
Rebekah Leger Rebekah Leger has great experience in leading people as well as
strong mathematical and analytical skills. She has three years of waitress experience,
four years of teaching experience (swimming lessons), and has held many leadership
positions in group projects throughout her high school and college career. She presently
works for the Math Resource Center and is Treasurer of one of the largest organizations
at Babson College, and she plans to be working for Fidelity this summer. She is currently
pursuing a Bachelor of Science degree in Business Management at Babson College.
Mike Sattler He is a senior at Babson College has a major focus in strategic
management and a background in finance and operations. Michaels work experience
includes three years at Wachovias Northeastern headquarters in the mortgage division.
He is graduating with a Bachelor of Science in Business Management in May of 2004
and plans to work for Wachovia in Richmond Virginia as a head in the HMDA division.
Michael is part of the Babson United Rugby Club and works part time as a waiter. Along
with in interest in business he is an eager student of psychology and history.
Gentleman Inc. is also currently searching for experienced professionals to form an
advisory board to provide guidance through the ventures early stages.
PAGE - 29 -
GENTLEMAN INC.
8.0 Critical Risks
8.1 Internal Factors
There are several factors that are important to the success of Gentleman Inc.:
!
Skilled professionals
- Qualified, experienced professional service employees are vital to success.
To provide customers with the highest quality services and experience, these
professionals must be present and willing to cater to the needs of customers.
- In the event that prospective employees are unqualified for these positions,
Gentleman Inc. management will not settle for less and will intensify recruiting
efforts. In addition, extensive employee guidelines will be established and
regular staff meetings will be held to ensure that hired employees are a
consistent, satisfied team.
Appointments vs. Walk in

- The business will be most effectively run through advanced scheduled
appointments. As potential customers learn about Gentleman Inc. through
promotions and word of mouth, they may want to walk in for an unscheduled
appointment. This would result in inconsistencies in the future, as the
clientele base increases and walk-ins are restricted.
- Despite inconsistencies, in the early stages of the business Gentleman Inc.
will accept walk-in customers to increase revenues and clientele. Once a
more steady customer base is established, appointments will be required for
all services to ensure efficiency and organization.
Cash Flow
- To continue operations it is necessary for Gentleman Inc. to sustain positive
cash flow for the first year.
- To ensure the positive cash flow, the business assumed a $20,000 working
capital value and $50,000 contingency. The loan amount was also over
$100,000 more than start up costs to give extra security.
Service Consistency
- The creation of processes and continued training of personnel will allow for
the service to be consistent.
- Higher than industry standard commission will give personnel an incentive to
provide high quality service to all customers.
8.2 External Factors

Despite research on the industry and marketplace there are still several factors that
could detrimentally affect the success of Gentleman Inc.:
!
Location
- To gain the exposure to its target market, a location in the downtown Boston
area is critical. One of the competitive advantages of Gentleman Inc. is
convenience which will not be fulfilled without the location.
- If no real estate is available for lease in the financial district, other locations in
the downtown Boston area will be sought. If for some reason no favorable
PAGE - 30 -
GENTLEMAN INC.
location could be found, wealthy suburban neighborhoods such as Wellesley
and Newton will be considered.
!
Interest in the Boston area

- Even though businesses with a similar model have found success in New
York and Los Angeles, without the interest in the Boston area the Gentleman
Inc. model will not be successful.
- Gentleman Inc. has already taken many steps to minimize this risk through
extensive market research. Secondary research proved the current male
spending in the Boston market and the opportunity for growth, while primary
customer surveys and interviews were conducted to illustrate the strength of
interest and potential demand.
Effective Education
- Gentleman Inc. will develop business from males currently purchasing
personal care services. However without the expansion of its customer base
through education, Gentleman Inc. will gain only limited success.
- To avoid this stagnation of growth, Gentleman Inc. has developed a detailed
marketing plan to ensure that brand and service awareness are established
in the marketplace. If these promotions do not return significant customer
growth, this marketing plan can be adjusted to more aggressively reach the
targeted customers.
Competitors
- Currently there are no competitors with the same business model in the
Boston market. However, if new businesses begin entering the market or if
current salon and spas target the male market, it could restrict Gentleman
Inc.s growth.
- Timing is critical to minimize the risk of competition dominating the
marketplace. Gentleman Inc. must take advantage of this opportunity to be
the first-mover in the marketplace. In addition, the business strategy ensures
quality customer service that will increase switching costs for brand loyal
customers of Gentleman Inc.
PAGE - 31 -
GENTLEMAN INC.
9.0 Financial Plan
9.1 Financial Assumptions
As with any business, Gentleman Inc. utilized many assumptions to create financial
forecasts. Several categories of assumptions as well as their values were incorporated
into the financial statements.
Gentleman Inc. will be using a $600,000 bank loan at 10% interest annually over 20
years. This choice was made to keep the debt payments lower and cash flow higher.
This is also a tax break over the life of the loan. The loan will cover start-up costs, which
are based on the industry averages of health and beauty salons in large metropolitan
areas such as Boston, New York and Los Angeles.
To bring Gentleman Inc. to operation, it needs just over $500,000 in investment. The
significant start up costs are the $200,000 for equipment and $200,000 for
renovations. There will also be a $15,000 initial materials cost and $5,000 other design
requirements. The full statement is found in Financial Statements.
For sales units and revenue growth Gentleman Inc. assumed a 10% growth rate for the
first six months and then 15% growth for the third quarter and then 20% for the fourth
quarter. In years two four growth rates were 40%, 50%, 50% respectively. For year
five, a growth rate of 4% was assumed because Gentleman Inc. reached its capacity.
To forecast revenues, assumptions about what percentage of clients would utilize salon
and spa services, as well as how many would purchase retail. In year one, it is assumed
that 90% of clients would utilize hair care and that 20% of clients would use spa
services. This is because some clients may use both services. In years two five,
Gentleman Inc. believes that hair care will stay constant since it is the main driver,
however the spa service utilization from clients will increase 5% each year, obtaining
40% of client services in year five.
Cost of sales is a large percentage of our total revenues at 50%. This is because the
commission to our service professionals is 50% and then the gross margin is 50% of
retail products.
To generate expenses, several industry averages were found. Materials are a variable
cost due to their consumption while performing the services, using 8% of revenue25. For
insurance cost, Gentleman Inc. assumes it to be 1% of revenues26. Other expenses
included marketing at $5,000 a month and a fixed rent expense of $5,500 a month
(based on real estate listings in downtown Boston). Wages are also another expense for
our cleaning staff, receptionist and bartender.
A more detailed list of assumptions can be found on page 34.
9.2 Financial Forecasts
The following charts depict the financial health and growth of Gentleman Inc. in years
one through five.
25
26
Personal Services including Hair Salons. http://www.bizstats.com/personal.htm, Nov. 28, 2003.

Ibid.
PAGE - 32 -
GENTLEMAN INC.
Chart 9.2.1 Revenue vs. Cash Flow vs. Net Income
Revenue vs. Cash Flow vs. Net Income

3500000
3000000
2500000
2000000
Revenue
1500000
Cash Flow
1000000
Net Income
500000
0
-500000 Year Year Year Year Year
1
2
3
4
5
Although Gentleman Inc. will achieve a negative income in the first year, by year two it
will have broken even and gained over $100,000 in income and increase in following
years.
Gentleman Inc. will achieve a positive cash flow in the first year and grow almost
exponentially to over $2 million by year five.
9.3 Break Even and Return on Investment
Break Even
To break even on the $600,000 loan, Gentleman Inc. must service just under 36,400
clients. This is using the number of client services provided as the units. To calculate this
number, the total service revenue was divided by the total number of services provided.
This number equaled an average gross margin of $16.5 per service. Gentleman Inc. will
achieve break even after 2.25 years with the number of clients needed.
Return on Investment
As with any start-up, the ROI will not be positive at the end of the first year. However
with a significant growth in business Gentleman Inc. will return 20 - 126% over the
following 4 years.
Year
1
2
3
4
5
Return on Investment
-38%
20%
57%
116%
126%
PAGE - 33 -
GENTLEMAN INC.
9.4 Financial Statements
9.4.1 Financial Assumptions
!
Sales (units)
- First year
! Growth: 10% first 6 months, 15% for
months 7-9, 20% for last 3 months
! 90% of clients utilize hair services
- 7% of these clients purchase
retail products
! 20% of clients utilize spa services
- 3 % of these clients purchase
retail products
- 50% of spa clients utilize
massage (constant)
- 20% of spa clients utilize skin
care (constant)
- 30% of spa clients utilize nail
care (constant)
- Second Year
! Growth: 40% for the year
retail products
retail products
- Third Year
retail products
retail products
- Fourth Year
retail products
retail products
- Fifth Year
! Growth: 4% (at capacity)
retail products
retail products
Revenues and Cost of Sales

- Average Hair Revenue: $30
! Cost of Sales: 50%
- Average Massage Revenue: $30
- Average Skin Care Revenue: $60
- Average Nail Care Revenue: $25
- Average Retail Revenue: $20
Expenses
- Marketing Expense: 5000 per
month
- Insurance Expense: 1% of
revenue27
- Rent Expense: 5500 per month
- Utilities Expense: 1200 per month
- Materials: 8% of revenue28
- Wages
! Receptionist: $10 per hour
! Cleaning staff: $10 per hour
! Bartender: $10 per hour
- Interest Expense: 10%
- Taxes: 30% of EBIT
27
Personal Services including Hair Salons.

http://www.bizstats.com/personal.htm, Nov.
28, 2003.
28
Ibid.
PAGE - 34 -
GENTLEMAN INC.
9.4.2 Statement of Start Up Costs
Gentleman Inc.
Statement of Start-Up Costs
Opening Materials
Equipment
Renovation & Construction
Brochures, Signage
Interior Design
Insurance
Legal
Prepaid Expenses
Advertising
Rent
Utilities
15,000
200,000
200,000
3,000
2,000
1,000
2,000
3,000
16,500
1,200
Sub total Hard Costs
443,700
+ Working Capital
+ Contingency
20,000
50,000
Total Start-up funds required
513,700
PAGE - 35 -
Net Income
(49,765)
(49,765)
Income Before Taxes
Taxes
6,976
22,000
2,400
1,809
11,000
1,218
6,667
5,000
2,000
2,000
61,069
Operating Expenses
Wages
Rent
Utilities
Materials
Marketing
Insurance
Depreciation
Interest
Interior Design
Legal
Total
(20,137)
(20,137)
6,976
5,500
1,200
1,990
5,000
240
6,667
5,000
0
0
32,572
11,979
455
12,434
12,434
10,890
414
11,304
11,304
Total
Cost of Sales
Services
Retail
Total
Gross Margin
February
660
594
132
46
23,958
911
24,869
Services
Retail
Hair
Spa
Retail
January
600
540
120
41
21,780
828
22,608
Revenue
Total Clients
9.4.3 First Year Income Statement
(19,117)
(19,117)
6,976
5,500
1,200
2,188
5,000
264
6,667
5,000
0
0
32,795
13,177
501
13,678
13,678
26,354
1,002
27,356
March
726
653
145
50
(17,994)
(17,994)
6,976
5,500
1,200
2,407
5,000
290
6,667
5,000
0
0
33,040
14,495
551
15,046
15,046
28,989
1,102
30,091
April
799
719
160
55
(16,759)
(16,759)
6,976
5,500
1,200
2,648
5,000
319
6,667
5,000
0
0
33,310
15,944
606
16,550
16,550
31,888
1,212
33,100
May
878
791
176
61
(15,401)
(15,401)
6,976
5,500
1,200
2,913
5,000
351
6,667
5,000
0
0
33,606
17,538
667
18,205
18,205
35,077
1,334
36,410
June
966
870
193
67
July
1,010
909
202
70
(14,722)
(14,722)
6,976
5,500
1,200
3,045
5,000
367
6,667
5,000
0
0
33,755
18,336
697
19,033
19,033
36,671
1,394
38,065
Gentleman Inc.
Income Statement
Year 1
GENTLEMAN INC.
(13,160)
(13,160)
6,976
5,500
1,200
3,350
5,000
403
6,667
5,000
0
0
34,096
20,169
767
20,936
20,936
40,338
1,534
41,872
August
1,111
1,000
222
77
(12,379)
(12,379)
6,976
5,500
1,200
3,502
5,000
422
6,667
5,000
0
0
34,266
21,086
802
21,888
21,888
42,172
1,603
43,775
September
1,162
1,046
232
80
(8,786)
(8,786)
6,976
5,500
1,200
4,202
5,000
506
6,667
5,000
0
0
35,051
25,303
962
26,265
26,265
50,606
1,924
52,530
October
1,394
1,255
279
96
(4,475)
(4,475)
6,976
5,500
1,200
5,043
5,000
607
6,667
5,000
0
0
35,993
30,364
1,154
31,518
31,518
60,728
2,309
63,036
November
1,673
1,506
335
115
489
210
699
(192,206)
210
(191,996)
83,712
82,500
15,600
39,149
66,000
5,714
80,000
60,000
0
0
436,675
235,718
8,961
244,679
244,679
471,435
17,922
489,357
Year End
12,987
11,688
2,597
896
PAGE - 36 -
6,976
5,500
1,200
6,051
5,000
729
6,667
5,000
0
0
37,123
36,437
1,385
37,822
37,822
72,873
2,770
75,644
December
2,008
1,807
402
139
January
0
(49,765)
6,667
(43,098)
(15,000)
(200,000)
(200,000)
600,000
0
156,902
156,902
Beginning Cash
Operating Activities
Net Income
+ Depreciation
Operating Cash Flow
Investing Activities
Materials
Equipment
Renovations
Financing Activities
Issuance of Debt
Payment of Debt
Cash Flow
Ending Cash
143,431
(13,471)
0
0
0
0
0
(20,137)
6,667
(13,471)
February
156,902
9.4.4 First Year Statement of Cash Flows
130,981
(12,450)
0
0
0
0
0
(19,117)
6,667
(12,450)
March
143,431
119,653
(11,328)
0
0
0
0
0
(17,994)
6,667
(11,328)
April
130,981
109,560
(10,093)
0
0
0
0
0
(16,759)
6,667
(10,093)
May
119,653
100,826
(8,734)
0
0
0
0
0
(15,401)
6,667
(8,734)
June
109,560
Gentleman Inc.
Statement of Cash Flows
Year 1
GENTLEMAN INC.
92,771
(8,055)
0
0
0
0
0
(14,722)
6,667
(8,055)
July
100,826
86,278
(6,493)
0
0
0
0
0
(13,160)
6,667
(6,493)
August
92,771
80,566
(5,712)
0
0
0
0
0
(12,379)
6,667
(5,712)
September
86,278
78,446
(2,119)
0
0
0
0
0
(8,786)
6,667
(2,119)
October
80,566
80,638
2,192
0
0
0
0
0
(4,475)
6,667
2,192
87,794
7,156
0
0
0
0
0
489
6,667
7,156
December
80,638
PAGE - 37 -
November
78,446
11,968
16,500
3,600
19,537
15,000
2,442
17,500
15,000
101,547
20,561
6,168
14,393
Operating Expenses
Wages
Rent
Utilities
Materials
Marketing
Insurance
Depreciation
Interest
Total
Income Before Taxes
Taxes
Net Income
21,402
9,172
30,574
11,968
16,500
3,600
21,491
15,000
2,686
17,500
15,000
103,745
129,008
5,311
134,319
134,319
117,280
4,828
122,108
122,108
Total
Cost of Sales
Services
Retail
Total
Gross Margin
Quarter 2
6,680
6,012
1,670
531
258,017
10,621
268,638
Services
Retail
Hair
Spa
Retail
Quarter 1
6,073
5,465
1,518
483
234,561
9,656
244,216
Revenue
Total Clients
29,111
12,476
41,588
11,968
16,500
3,600
23,640
15,000
2,955
17,500
15,000
106,163
141,909
5,842
147,751
147,751
283,818
11,683
295,502
Quarter 3
7,348
6,613
1,837
584
Quarterly Income Statement

Year 2
37,592
16,111
53,703
11,968
16,500
3,600
26,004
15,000
3,251
17,500
15,000
108,823
156,100
6,426
162,526
162,526
312,200
12,852
325,052
Quarter 4
8,083
7,275
2,021
643
102,498
43,928
146,425
47,872
66,000
14,400
90,673
60,000
11,334
70,000
60,000
420,279
544,298
22,406
566,704
566,704
1,088,596
44,812
1,133,408
Year End
28,184
25,365
7,046
2,241
Gentleman Inc.
9.4.5 Year Two Income Statement and Statement of Cash Flows
31,893
119,687
Ending Cash
0
0
Issuance of Debt
Payment of Debt
Cash Flow
0
0
0
14,393
17,500
31,893
Quarter 1
87,794
158,588
38,902
0
0
0
0
0
21,402
17,500
38,902
Quarter 2
119,687
Quarterly Cash Flow

Year 2
Equipment
Pre-paid
Renovations
Net Income
+ Depreciation
Operating Cash Flow
Beginning Cash
GENTLEMAN INC.
205,200
46,611
0
0
0
0
0
29,111
17,500
46,611
260,292
55,092
0
0
0
0
0
37,592
17,500
55,092
Quarter 4
205,200
PAGE - 38 -
Quarter 3
158,588
1,372,107
54,536
1,426,642
1,426,642
865,593
35,511
901,104
901,104
47,872
66,000
14,400
144,177
60,000
18,022
70,000
60,000
480,471
420,633
126,190
294,443
Total
Cost of Sales
Services
Retail
Total
Gross Margin
Operating Expenses
Wages
Rent
Utilities
Materials
Marketing
Insurance
Depreciation
Interest
Total
Income Before Taxes
Taxes
Net Income
596,102
255,472
851,575
47,872
66,000
14,400
228,263
60,000
28,533
70,000
60,000
575,068
2,744,214
109,071
2,853,285
Services
Retail
Hair
Spa
Retail
Year 4
63,413
57,072
22,195
5,454
1,731,185
71,023
1,802,208
Revenue
Total Clients
Year 3
42,276
38,048
12,683
3,551
648,608
277,975
926,583
47,872
66,000
14,400
242,899
60,000
30,362
70,000
60,000
591,533
1,445,825
72,291
1,518,116
1,518,116
2,891,650
144,582
3,036,232
Year 5
63,413
57,072
25,365
7,229
364,443
624,735
Ending Cash
0
0
Issuance of Debt
Payment of Debt
Cash Flow
0
0
0
Equipment
Pre-paid
Renovations
364,443
294,443
70,000
Year 3
260,292
1,290,838
666,102
0
0
0
0
0
666,102
596,102
70,000
Year 4
624,735
Year End Cash Flow Statement

Year 3 - 5
Net Income
+ Depreciation
Start-Up Expense
Operating Cash Flow
Beginning Cash
Gentleman Inc.
* reach capacity in year 5
Year End Income Statement

Year 3 - 5
9.4.6 Years Three Five Income Statements
GENTLEMAN INC.
PAGE - 39 -
2,009,446
718,608
0
0
0
0
0
718,608
648,608
70,000
Year 5
1,290,838
87,794
87,794
200,000
200,000
(80,000)
407,794
600,000
600,000
0
(192,206)
(192,206)
407,794
Long Term Assets

Equipment
Renovations
Accum. Deprec.
Total Assets
Liabilities and Owners Equity

LT Liab
Total Liabilities
Owners Equity
Retained Earnings
Total Owners Equity
Owners Equity + Liabilities
Year 1
510,292
0
(89,708)
(89,708)
600,000
600,000
200,000
200,000
(150,000)
510,292
260,292
260,292
Year 2
Gentleman Inc.
Year End Balance Sheet
Year 1 - 5
Assets
Current Assets
Cash
Total Current Assets
9.4.7 Years One Five Balance Sheets
GENTLEMAN INC.
804,735
0
204,735
204,735
600,000
600,000
200,000
200,000
(220,000)
804,735
624,735
624,735
Year 3
1,400,838
0
800,838
800,838
600,000
600,000
200,000
200,000
(290,000)
1,400,838
1,290,838
1,290,838
Year 4
2,049,446
0
1,449,446
1,449,446
600,000
600,000
200,000
200,000
(360,000)
2,049,446
2,009,446
2,009,446
Year 5
PAGE - 40 -
GENTLEMAN INC.
10.0 Appendices
Appendix A
Capacity Calculations
Gentleman Inc.
Capacity Calculations
Capacity Calculations For Weekday
Time Required / Stations (hours) Number of Workers Hours per day Capacity
Haircuts
0.75
3
14
56
Massages
1.5
2
14
19
Facials
0.75
2
14
37
Waxing
0.5
2
14
56
Manicures
0.5
2
14
56
Pedicures
1
2
14
28
252 per weekday
Capacity Calculations for Weekend
Time Required / Stations (hours) Number of Workers Hours per day Capacity
Haircuts
0.75
3
8
32
Massages
1.5
2
8
11
Facials
0.75
2
8
21
Waxing
0.5
2
8
32
Manicures
0.5
2
8
32
Pedicures
1
2
8
16
144 per weekend
Capacity Per Week
1404
Capacity Per Month
5616
PAGE - 41 -
GENTLEMAN INC.
Appendix B
Customer Survey
Gentleman Inc. represents a business idea of an exclusively male salon/spa that will be located in the
Financial District of Boston. This survey is to assess the viability of our business concept. Thank you for
taking the time to fill it out.
1. How important is physical appearance to you? (Please circle)
Very important
Important
Not Important
2. How important is appearance in business? (Please circle)

Very important
Important
Not Important
3. What is your companys style of attire? (Please circle)

Casual
Business Casual
Semi-formal
Formal
4. Where do you get your hair cut? (Please circle)

Barber Shop
Salon
Other (please specify)
5. On a scale from 1-7, please indicate the importance of each of the following factors in your
decision to receive hair care. (Circle one)
Not important...Very Important
Convenience
Price
Image
Variety of Services
Quality
Atmosphere
1
1
1
1
1
1
2
2
2
2
2
2
3
3
3
3
3
3
4
4
4
4
4
4
5
5
5
5
5
5
6. How often do you get your hair cut? (Please circle)

At least once a week
Every two weeks
Once a month
7. When do you usually get your hair cut? (Please circle)
6
6
6
6
6
6
Longer than a month
Weekday
8. If during the week, what time of day do you go? (Please circle)
5-9
9-12
12-2
7
7
7
7
7
7
Weekend
2-4
9. How much, on average, do you spend for a hair cut? (Please circle)
$20 or less
$20-$30
$30-$40
4-8
more than $40
10. What other hair services would interest you? (Please circle all that apply)
Styling
Coloring
Hair Growth Treatments
11. Do you currently utilize massage therapy? (Please circle)
Yes
No
12. If yes, how often do you utilize massage therapy, on average? (Please circle)
Once a week
Once a month
1 to 3 months
Longer than 3 months
13. How much, on average, do you spend on massage per visit? (Please circle)
$30 or less
$30-$60
$60-$90
More than $90
PAGE - 42 -
GENTLEMAN INC.
Appendix B cont
Customer Survey
14. Where do you usually receive massage therapy? (Please circle)
Health club
Home
15. On a scale from 1-7, please indicate your interest in the following services. (Circle one)
Not Interested...Very Interested
Eyebrow waxing
Back waxing
Chest waxing
Manicures
Pedicures
Facials
Anti-aging services
Skin Conditioning
Tanning
1
1
1
1
1
1
1
1
1
2
2
2
2
2
2
2
2
2
3
3
3
3
3
3
3
3
3
4
4
4
4
4
4
4
4
4
5
5
5
5
5
5
5
5
5
6
6
6
6
6
6
6
6
6
7
7
7
7
7
7
7
7
7

16. How much time are you willing to spend per salon visit? (Please circle)
Less than 30 minutes
30 minutes 1 hour
1-1.5 hours
Over 1.5 hours
17. To what extent would you feel comfortable visiting a female salon for you services? (Please
circle)
Very comfortable
Comfortable
Not Comfortable
Indifferent
18. Would a salon exclusively for males be of interest to you?
Yes
No
Why or why not?
Maybe
19. Please indicate your gender preference in the following services. For example, would you
prefer your hair cut by a male, female, or do you have no preference? (Please check one per
service.)
Service
Hair care
Eyebrow waxing
Back waxing
Chest waxing
Manicures
Pedicures
Facials
Skin Conditioning
Male
Female
No Preference
PAGE - 43 -
GENTLEMAN INC.
Appendix B cont
Customer Survey
20. On a scale of 1-7, please indicate your interest in the following services that could be offered
during the waiting period. (Circle one)
Not Interested...Very Interested
Putting Green
Shoe Shining
Mini Bar
Gourmet Catering
Hot Shaves
TVs
Music
1
1
1
1
1
1
1
2
2
2
2
2
2
2
3
3
3
3
3
3
3
4
4
4
4
4
4
4
5
5
5
5
5
5
5
6
6
6
6
6
6
6
7
7
7
7
7
7
7
21. On a scale of 1-7, please indicate your interest in the possible names for our exclusive male
salon/spa. (Circle one)
Jonathan James Salon & Spa
Adonis
Other (Please Specify)
1
1
22. What is your age? (Please circle)

21-29
30-39
40-49
23. Are you Married
or
Single
2
2
3
3
50-59
4
4
5
5
6
6
7
7
60 and over
24. What is your yearly income?

Under $40,000
$40,000-$60,000
$60,000-$80,000
over $80,000
25. In what city or town do you live? _____________
PAGE - 44 -
GENTLEMAN INC.
Appendix C
Customer Survey Results
# of
Respondents
For Each
Question
# of Respondents
Answering
Corresponding to
the Statements
50
50
50
50
50
50
50
50
50
50
50
50
50
35
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
44
45
44
43
45
46
45
49
45
47
47
47
47
46
50
33
18
43
39
21
7
43
24
44
32
34
22
16
7
5
9
15
10
15
10
12
16
22
23
17
15
14
21
44
46
46
47
50
50
50
50
26
23
31
12
28
43
40
38
28
12
19
4
12
92%
100%
66%
36%
86%
78%
42%
14%
86%
48%
88%
64%
68%
63%
32%
14%
10%
18%
30%
20%
30%
20%
24%
32%
44%
46%
34%
30%
28%
42%
88%
92%
92%
94%
100%
100%
100%
100%
59%
51%
70%
28%
62%
93%
89%
78%
62%
26%
40%
9%
26%
Said physical appearance is of importance

Said that appearance in business is of importance
Said that their attire was semi-formal to formal
Receive hair cuts in a salon
Feel convenience is of great importance
Feel price is of great importance
Feel that image is of great imporance
Feel that variety of services is of great importance
Feel that quality is of great importance
Feel that atmosphere is of great importance
Get their hair cut at least once a month
Get their hair cut during the week
Spend $20 dollars or less
Are interested in styling
Utilize massage therapy
Are interested in eyebrow waxing
Are interested in back waxing
Are interested in chest waxing
Are interested in manicures
Are interested in pedicures
Are interested in facials
Are interested in anti-aging services
Are interested in skin conditioning
Are interested in tanning
Willing to spend 30 minutes or less in a salon
Willing to spend 1-1.5 hours in a salon
Feel comfortable in a female salon
Number
Are indifferent
Prefering
Would be interested in a male salon
Female
Said maybe interested in a male salon
19
Either have no preference or prefer a female performing hair care
26
Have no preference or prefer a female performing eyebrow waxing
28
Have no preference or prefer a female performing back waxing
Have no preference or prefer a female performing chest waxing
26
32
Have no preference or prefer a female performing manicures
32
Have no preference or prefer a female performing pedicures
32
Have no preference or prefer a female performing facials
32
Have no preference or prefer a female performing skin conditioning
Are interested in a putting green
Are interested in shoe shining
Are interested in a mini bar
Are interested in gourmet catering
Are interested in hot shaves
Are interested in TV's
Are interested in music
Are between the ages of 20 - 40
Are single
Make under $40,000
Make between 40 and $60,000
Make between 60 and $80,000
Make over $80,000
43%
57%
61%
55%
64%
64%
64%
64%
Prefer Female
Prefer Female
Prefer Female
Prefer Female
Prefer Female
Prefer Female
Prefer Female
Prefer Female
PAGE - 45 -
GENTLEMAN INC.
Appendix D
Heather Tomkinson Resume
Heather Stacey Tom kinson

Current:
Campus Box # 2550
Babson College
781-239-4933
htomkinson@babson.edu
Perm anent
17 W illowleaf Drive
Littleton, CO 80127
303-933-8545
cell phone: 303-548-1810
Education:
Babson College, Babson Park, MA
Septem ber 2001 Presen
!
Candidate for Bachelors of Science in Business Adm inistration
G.P.A. 3.68
Concentrations in Marketing and Entrepreneurship
Honors:
!
Deans List all sem esters
!
Selected by faculty to be one of forty students to participate in Honors Program
!
Recom m ended for Math Resource Center Consultant position based upon academ ic perform ance
!
Selected for 8 week program in at London School of Econom ics, including an internship and
coursework
!
NEW M AC All-Academ ic Honors W inter 2002-2003
Septem ber 1997 M ay 2001
Lakewood H igh School, Lakewood, CO
!
International Baccalaureate Diplom a
W ork Experience:
W riting Center Consultant
!
Com pleted intense training for writing developm ent, editing and consultation
!
Perform consultations on course writing assignm ents for other students
August 2002 Presen
Foundation M anagem ent Experience Mentor
!
Selected by faculty for position to advise first-year students
!
Evaluate perform ance on written assignm ents
!
Collaborate with students in order to develop possible actions for business plans
June 2003 July 2003
Orange, London, England
Marketing / Brand Strategy Department Intern
!
Developed and im plem ented m arketing research plan on Internet and m obile chatting trends for
senior m anagem ent
!
Conducted com petitor shopping research and report for senior m anagem ent
!
Participated with other team mem bers in brainstorm ing and product positioning strategy sessions
June 2002 August 2002
University of Massachusetts M edical Center, W orcester, M A
Medical Research Assistant
!
Perform ed research on protein expression of Epstein Barr Virus
!
Perform ed com plicated procedures requiring precise m easurem ent and sequence
!
Presented results of EBV specific CD4+ T cell paralleling EBV load over the course of acute
infectious m ononucleosis to m edical school comm unity
January 2002 April 2002
BABO Records, Babson C ollege, Babson Park, MA
Director of Sales in curriculum based student-run business for charity
!
Contacted potential retail custom ers
!
Created sales pitch
!
W orked with a team in order to develop and im plem ent a m arketing strategy
Extracurricular Activities:
Babsonian Yearbook
!
Creating database and organization in order to create and edit archives
Babson College Swimm ing and D iving
!
Participated in freestyle com petitions of 50 yards and 1,000 yards Septem ber 2002 M arch 2003
Com puter Skills:
!
Proficient in: Microsoft O ffice, Access, M initab Statistical Software, Precision Tree Decisional
Analysis Package, @ Risk Sim ulation Package, Research tools (including Proquest, Hoovers,
Factiva, Thom son Research)
PAGE - 46 -
GENTLEMAN INC.
Appendix E
Christopher Gartlan Resume
Christopher J. Gartlan
cgartlan@babson.edu
Babson College-Box 1184
Home: (609) 953-0207
30 Kiowa Trail
Medford Lakes, NJ 08055
Cellular: (609) 304-1949
EDUCATION
Babson College
Candidate for Bachelor of Science in Business Management
Babson Park, MA
May 2004
Relative Coursework
! Business Analysis
! Marketing and Developing New Products
! Psychology of Leadership
! Core Management Courses (FME/2 semesters & IMC/3 semesters)
! Negotiations
! Entrepreneurship and New Ventures
Babson College
WORK EXPERIENCE
The Battle Green Inn & Suites
Lexington, MA
Marketing Director
June 2003-present
! Developed specific marketing strategies to be implemented to increase occupancy rates
! Created value-driven incentives for customers such as discount books for each guest
! Focused on re-building brand name within local community through series of Open Houses
Fajitas and Ritas
Babson College
Competitive Analysis (part of Intermediate Management Core-student team)
Fall 2001
! Performed detailed business analysis of industry and firm
! Delivered operations adjustments to create an efficient restaurant service
The Truck Stop
Babson College
VP of Finance
Spring 2001
! Student-run business which operated a mobile snack car and online grocery delivery service
! Maintained financial information linking Excel files for sales inputs and purchase information
! First student-run E-commerce business in Babson history (online grocery delivery)
Medford Township Public Schools
Summer Painter
! Painted interior of schools and decided on supplies and schedules
Medford, NJ
Summers 2000-2002
Gartlan U.S.A. Inc.

Berlin, NJ
Warehouse Manager & Office Assistant
Holidays 1998-2001
! Received and shipped orders while maintaining inventory valued at $1.2 million of merchandise
! Executed tasks ranging from, but not limited within, filing to various mailings
ACTIVITIES/SKILLS
Habitat for Humanity
Babson College
Active Member
Fall 2002-present
! Contributed in the construction of a house in El Paso, Texas during Spring 2003
! Participated in fundraising events (ex. Haunted House for local children)
Boy Scouts of America
Medford Lakes, NJ
! Achieved the rank of Star Scout
1988-1999
! Held many leadership positions: Patrol Leader, Scribe, Venture Crew
! Learned skills that I value highly as result of Scouting
Computer
! Microsoft Office proficient (Word, Excel, FrontPage, PowerPoint, Outlook, Access)
! Computer and technology literate, with various operating systems and troubleshooting experience
PAGE - 47 -
GENTLEMAN INC.
Appendix F
Rebekah Leger Resume
REBEKAH DORIS LEGER
rleger@babson.edu
Current
Box #1485
Babson Park, MA, 01457
EDUCATION
Babson College
Cumulative GPA: 3.86, Deans List (4 semesters)
Average 10 hrs/wk in leadership activities
St. Bernards Central Catholic High School
Academic Head Masters List: achieved above a 93 average (11,12)
2 Principals Academic Athlete Awards for achieving the highest GPA on the team
Permanent
453 Fisher Road
Fitchburg, MA, 01420
978-342-5430
Babson Park, MA
May 2005
Fitchburg, MA
May 2001
EXPERIENCE
SoftSleepers
Director of Finance, Community Service department
Member of student startup business as part of Babsons first year curriculum
Achieved top sales
Completed community service and donated profits to the Greater Boston Food Bank
Babson Park, MA
Spring 2001
Dunn-Gaherins Restaurant
Needham, MA
Waitress & bartender in training

May 2003-present
Serve and respond to customer needs, demonstrate great attention to detail, adapt to an extremely fast pace environment
Boston Sports Club
Lifeguard & WSI (Water Safety Instructor)
Patrolled pool area and ensured safety among guests
Administered and evaluated group swimming lessons for children

Certified Water Safety Instructor
Self-employed Water Safety & Swimming Instructor
Organize, instruct, and evaluate group, private, and semi-private

lessons for all ages
Il Forno Restaurant
Waitress
Orchard Hills Athletic Club
Lifeguard & WSI

Advanced Marketing Solutions (Contractor of Porsche Cars North America)
Customer Service Representative
Directed communications around the office
Responded to customer inquiries and updated customer database

LEADERSHIP
Office of Campus Life, Peer Mentor
Co-teach First Year Experience to aid students in their transition into Babson College
Math Resource Center, Tutor
Assist students with math homework and problems

Babson Dance Ensemble
Treasurer-maintain, balance, and forecast budget
Dancer-perform in semester recitals

Walk for Breast Cancer, volunteer
Greater Boston Food Bank, volunteer
Interests: piano player
Computer Skills: Microsoft Word, Excel, Access, PowerPoint, Outlook; Minitab
Wellesley, MA
March 2003-present
Fitchburg, MA
May 2002-present
Fitchburg, MA
December 2001-present
Leominster, MA
Summer 1999-2002
Leominster, MA
November 2001-June 2001
September 2003
February 2003 present
January 2002-present
October 2002
March 2002
PAGE - 48 -
GENTLEMAN INC.
Appendix G
Erin Hurley Resume
Erin Lynne Hurley
Campus Box 1458 Babson Park, MA 02457 781-239-4935

ehurley@babson.edu
Education:
BABSON COLLEGE
WELLESLEY, MA
May 2004
Concentration in Marketing: 3.80 GPA (Magna cum Laude, Deans List)
Intensive coursework in Brand Management, Consumer Behavior, Market Research, and HR Management
Presidential Scholarship: Merit-based award offered to top 5% of admitted students per incoming class
Honors Program Study Abroad in Chile (Winter 2002), London Theater Program Study Abroad (Winter 2004)
Academic Achievements
Conducted research analysis on the effectiveness of buzz marketing campaigns in the non-profit sector, specifically
targeted towards anti-drug initiatives taken on by the federal government
Created a 40-page business plan for an innovative mens spa & salon in Boston, MA, which included financial
analyses and projections, corporate and competitive strategy, and extensive market research
FOX CHAPEL HIGH SCHOOL
Senior Scholar (Highest Ranking). 4.0 un-weighted GPA
Senior Project: Coordinated Craft Show to raise $2000 for the Make-A-Wish Foundation
PITTSBURGH, PA
June 2000
Experience:
BABSON COLLEGE ADMISSIONS OFFICE
BABSON PARK, MA
Admissions Intern
Fall 2003-Present
Interview prospective applicants to the college to determine fit with the Babson culture
Assist in planning special events for prospective students including Open House, Overnights, Class Visits
Coordinate the selection process for the exclusive Womens Leadership Scholarship
Plan and schedule travel and events for Admission staff road shows around the country
JEM SEAL CO.
GIBSONIA, PA
Summer 2003, 2002
Sales/Marketing Coordinator
Initiated the sales and marketing efforts for this small manufacturing startup
Designed and compiled a sales brochure that details the goods and services provided by JEM Seal
Developed an extensive client database to aid in enhancing customer relationship management

BABSON COLLEGE ALUMNI RELATIONS
BABSON PARK, MA
Alumni Programs Assistant
Fall 2001-Spring 2003
Prepared correspondence with college alumni for special event programs and functions around the country
Compiled job descriptions and requirements to be posted on the Alumni website

DICKS SPORTING GOODS, INC Corporate HQ
PITTSBURGH, PA
Summer 2001
Accounts Payable Internship
Researched and adjusted invoices and receipts to enable payment of large supplier accounts
Interacted with the corporate accounting division to deliver accurate data for monthly book closings
BABSON BEAVER WEAR
BABSON COLLEGE
Vice President of Community Service
Spring 2001
Sat on the board of this student run venture to sell custom clothing to Babson students, faculty, and organizations
Coordinated weekend service events for over 30 employees with The Friends of the Homeless of the South Shore
Activities/Interests:
Campus Activities Board: Knight Party Chair. Organized, coordinated, and successfully executed creatively themed
dances/social events for student body of 1700. (Spring 2001- Spring 2002)
Babson College Varsity Lacrosse: Two year commitment and contribution to team
Wellesley Youth Lacrosse: Volunteer Coach teaching young girls fundamentals and teamwork. (Spring 2003)
Country Music, Guitar, Poetry, and Writing Childrens Books
Computer Skills:
Microsoft Office:
Access, Excel, PowerPoint, Word
PAGE - 49 -
GENTLEMAN INC.
Appendix H
Michael Sattler Resume
Michael Thomas Sattler

msattler@babson.edu
203.645.4587
Campus Address
Babson College Box 2442
Babson Park MA 02457
Permanent Address
19 Ridgewood Rd
Meriden CT 06450
Education
Babson College
Wellesley MA
Concentration in Strategy and Operations
Cumulative GPA 3.00
Coursework: Real Estate, Plan and Control, Strategic Management, Entrepreneurship
Experience
Wachovia Mortgage
HMDA Specialist
Assistant to underwriters and auditors within Wachovia
Developed Access programs for my department
Bertuccis Brick Oven Pizzeria
Server/ Shift Manager
Waiting tables, customer interaction
Opening and closing responsibilities
Waterbury CT
Summer-Winter
2000-2003
Wellesley MA
Spring 2001-Present
Beaver Beverage Delivery

Vice President of Marketing
Spring 2001
Student-run business at Babson College during FME
Developed unique marketing plans for each campus residence
Managed 5 member marketing team which included motivating and evaluating
Computer Skills
Microsoft Access, Excel, PowerPoint, FrontPage Minitab Uni-Form (specially for
mortgage applications) Bloomberg
Activities
Part Time Lifeguard/ Swim instructor
Babson College Rugby
Camping/Hiking
Golf
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GENTLEMAN INC.
PAGE - 51 -

Gentleman Inc.: "Make Your Way"

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Gentleman Inc.: "Make Your Way"

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GENTLEMAN INC.

Make Your Way

Quality and uniqueness of services

Relationship with Community

2.4.3 Exit Strategy

Threat of New Entry

-home grooming, dermatologists

-low barriers to entry

Rivalry of Existing Players

Bargaining Power of Suppliers

Bargaining Power of Buyers

-many beauty professionals

-many competitors to choose from

Influential Factors on Buying Decisions

Beauty Salons Direct Competitors

Day Spas Direct Competitors

Barber Shops Indirect Competitors

Health and Fitness centers Indirect Competitors

Fitness Centers +Boston.Verizon super Pages. http://www.superpages.com, Nov. 15, 2003

- Image and Style

- Image and Style

4.5.1 Stage One

Year 1 Year 2 Year 3 Year 4 Year 5

Chart 4.7.1.2 Yearly Revenue Growth

4.7.2 Marketing Expenses

MarketResearch.com Academic. Beauty Salons. April 1, 1997.

Convenience: Location is part of the convenience, however, offering desired

Advertising: As mentioned in the Marketing Plan, advertising is crucial to the

Starting a Business. http://www.sba.gov/starting_business/startup/guide4.html, Nov. 15, 2003.

* All estimations following the finding of acceptable business space

Appointments vs. Walk in

8.2 External Factors

Interest in the Boston area

Personal Services including Hair Salons. http://www.bizstats.com/personal.htm, Nov. 28, 2003.

Revenue vs. Cash Flow vs. Net Income

Revenues and Cost of Sales

Personal Services including Hair Salons.

Sub total Hard Costs

Total Start-up funds required

Income Before Taxes

9.4.3 First Year Income Statement

9.4.4 First Year Statement of Cash Flows

Income Before Taxes

Quarterly Income Statement

9.4.5 Year Two Income Statement and Statement of Cash Flows

Quarterly Cash Flow

Income Before Taxes

Year End Cash Flow Statement

* reach capacity in year 5

Year End Income Statement

9.4.6 Years Three Five Income Statements

Long Term Assets

Liabilities and Owners Equity

Owners Equity + Liabilities

9.4.7 Years One Five Balance Sheets

2. How important is appearance in business? (Please circle)

3. What is your companys style of attire? (Please circle)

4. Where do you get your hair cut? (Please circle)

Other (please specify)

6. How often do you get your hair cut? (Please circle)

Longer than a month

Other (please specify)

Other (please specify)