Cranium Filament Reductions

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Hair Salon Business Plan

Management Summary

Susan Sever received her bachelor's degree from Miami University in Oxford, OH. While pursuing her degree Susan worked in the restaurant industry. For the four years during school she was a server in an upscale restaurant. While this provided very good income, particularly on the weekends, she longed for management experience.

After graduation she sat down with the owner of the restaurant and presented him with a well reasoned case as to why she should be manager of the establishment. Her main points were her intimate knowledge of the industry and the restaurant, her superior communication skills with the customers and her colleagues, and her ambition to succeed. The owner was surprised by the well-reasoned arguments, enthusiasm, and ambition to take on more work that he promoted her to manager on the spot.

Susan worked as manager for three years, learning all the intricacies of operating a business. These were three rewarding, but long, years. Toward the end, the long hours and work at night took its toll on Susan and she was burned out. When contemplating new opportunities she was brainstorming a  way in which she could combine something she loved with something that she would be the owner of. She loved hair and had the experience of operating a business so after a lot of market research she undertook the task of writing a business plan.  

6.1 Personnel Plan

Susan will be working full time for Cranium Filament Reductions. She will be handling all hiring and training, purchasing, and retail sales. Susan will also hire a receptionist to manage all of the appointments as well as the people who walk in and be responsible for the point of sale. The receptionist will be paid an hourly wage. Susan will also be hiring six part-time hair stylists who will operate on a hourly/commission basis. 

Susan will be using a partial commission basis to create incentives for superior customer attention. The more her stylists attend to the customer's needs, the more money they will make off commissions. Susan is more than happy to pay for this type of performance.

Personnel Plan
Year 1 Year 2 Year 3
Susan $36,000 $40,000 $44,000
Receptionist $17,600 $19,200 $19,200
Part-time hair stylist $33,000 $36,000 $36,000
Part-time hair stylist $33,000 $36,000 $36,000
Part-time hair stylist $33,000 $36,000 $36,000
Part-time hair stylist $33,000 $36,000 $36,000
Part-time hair stylist $33,000 $36,000 $36,000
Part-time hair stylist $33,000 $36,000 $36,000
Total People 8 8 8
Total Payroll $251,600 $275,200 $279,200