That´s Cut

HAIR SALON FOR EVERYONE

 Operations Management

BUSINESS LOCATION
It can be located either near a residential area or
a commercial area since both locations will
perfectly fit our target.
 Operations Management

Ways of reaching our customer

SocialMedia
Referrals
Recommendations
Promotions
 Operations Management

Operation Design
Branding
Identifiable
Ambiance
 Operations Management
Facilities required for our Hair Salon:

- Reception desk - Magazines and Posters of

- Chairs and/or sofas models with different
hairstyles
- Shelf stack
- Mirror and a station with
- Water dispenser
power source for the hairstylist
Service Supply
Chain Outline
Plan to meet our business goal

 To obtain a good result, our goal is to make all our

employees know our target and priorities. They
have a big role in achieving our goal to our
business because they are the frontline who will do
the work possible.
“ That’s Cut”
PRESENTATION BY TIOLUWANI BABALOLA
 Organization Structure & Staffing Plan
Owners/Partners  The management team in the interim/beginning stages will include a single manager who will
oversee the general day to day operations of the salon. The manager to be selected will preferably
have a skillset that encompasses the rest of the general employees’ skill set. This manager will
Manager(s) report operations and business decisions with owners in regular intervals.
Strengths:
General  Ability to draw from a wider pool of resources having multiple business partners
Workers  More able to identify business lapses, because there are multiple partners, lapses that one partner
omits might be identified by another partner.
 Able to delegate tasks, as there is more “hands on deck” which will lead to higher efficiency rates
in completing business objectives.
 Business can have continuity if one of partners/members leaves the business
Weaknesses:
 Having partners means that decisions are taken at a much slower rate which can be detrimental to
the business’s responsiveness.
 Group may lack proper expertise to run all aspects of business. e.g., if training for employees was
required, members may not have proper expertise to set up training sessions
 The group may need external support in sourcing of materials for salon as well as service
expertise such as the one mentioned above. The group may not be equipped to run every aspect of
the business.
Staffing Plan:
The staffing plan will include a roster of one general manager to
oversee stylists and other general employees. 4 stylists (2 per gender)
with intermediate salon skills with another 4 stylists who are
experienced and specialized in haircuts, hair coloring and hair
extensions with proficiency in at least two categories. One general
cleaning staff to keep premises clean and the last staff member being
the receptionist and schedule planner.

The initial plan will be to start out with 2 stylists per skill level (1 per
gender) so in total 4 initial stylists, one receptionist and one cleaning
staff. With gradual phasing in of additional staff at different growth
indicators.
Initial thoughts about pay levels will be varying hourly rates which
are based on skill level and staff hierarchy. Training shall be running
every six months and will be based on base skill set which
opportunities to specialize. Employee engagement will be performers
of the month awards to drive stylist performance. Retention shall be
encouraged with a review in pay coming every 24 months and
condition to performance.
 MARKETING

BY- GURMEHAK SINGH

Products Offer
 Hair- cutting
 Coloring
 Hair Styling
 Waxing
 Beard and Moustache Styling

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Main Target
group
 Walk-ins
 Regular customers
 Trendy customers
 Families
 COMPETITORS

Direct competitors Indirect competitors

Others salon in the nearby location

Retailers who sell products for waxing, hair

cutting machines and trimmers.

 PRICING FACTORS

1 2 3

Cost of production Demand of the service Price of competitors firms

That´s Cut
FINANCIAL INFORMATION
Financial Information

 Initial Costs:
Item Cost
Rent- first and last payment $5,000.00
Permits and Licenses $1,000.00
Renovations $10,000.00
Furniture e Equipment $20,000.00
Styling tools and Products $2,000.00
Insurance $150.00
Utilities $600.00
Branding and Design $600.00
Marketing Promotion $2,000.00
Total $41,350.00
Financial Information

• Start-up Money: $50,000.00

• Small Business Loan: $20,000.00
Interest rate: 5.5%pa
Due in 2 years
 Financial Information
 Fixed costs:

Fixed Costs  

Salaries $15,400.00
Utilities $600.00
Rent $2,500.00
Insurance $150.00
Marketing promotion $200.00
Bank loan $925.00
Total $19,775.00

 Variable costs about 4.8% on the cost of sales

 Financial Information
 Profit margin for beauty salons is around a maximum of 20%
 Total annual revenue: $256,500.00

Financial projection for one year of operation in 2022

$30,000

$25,200 $25,700
$24,200 $24,700
$25,000 $23,800
$23,300
$22,200
$20,700 $21,200
$19,775 $19,775 $19,775 $19,775 $19,775 $19,775 $19,775 $19,775 $19,775 $19,775 $19,775 $19,775
$20,000
$18,000

$15,000
$15,000
$12,500

$10,000

$5,000

$600 $720 $864 $994 $1,020 $1,065 $1,140 $1,142 $1,160 $1,185 $1,210 $1,235
$0
January February March April May June July August September October November December

Estimated Revenue Variable Costs Fixed Costs

Financial Information

 Financial projection for the next years:

 Target - monthly revenue: $25,700.00

 End of loan payment after 2 years

Expansion
New unit
Thank you!