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Salon & Spa icon Men's Salon Business Plan

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Jonpaul's

Strategy and Implementation Summary

  1. Emphasize quality, originality, and “World Class Service”. We will differentiate ourselves from our competitors by offering a staff of practitioners who are not only certified in their professions, but will be trained in understanding the dynamics of customer service so as to maximize the connection to their clients and more easily meet their clients expectations.
  2. We will provide a unique atmosphere. From our professional staff to our ambience of our barber shop, Jonpaul’s will distinguish itself as a completely trustworthy and soothing setting where clients can enjoy being pampered, escape the stress of their everyday lives and enjoy the camaraderie of friends and colleagues.
  3. Build a community/corporate relationship-oriented business. We will focus on strengthening the trust of our customer base, and providing not only services, but information that will aid everyone in the progression of obtaining a balanced and healthy lifestyle.

5.1 Value Proposition

Our value proposition is that we will bring a unique mode of relaxation and fulfillment to the discerning gentleman. When people are relaxed, comfortable, and happy they have the ability to work harder, concentrate better, feel physically, emotionally, and mentally balanced, and give that happiness back into their homes, workplace, and community. Simply put, our value proposition is that we help our community become a better place to live and work.

5.2 Competitive Edge

Our competitive edge is a combination of our unique services, outstanding location, and our interaction with our clients. By providing our clients a gentleman’s club atmosphere and provide world class services, we build relationships of trust and satisfaction. Our clients will come to depend on our unique services and fulfilling environment.

5.3 Marketing Strategy

Our marketing strategy is the key to our success:

  1. Emphasize our name and unique services and environment through advertising.
  2. Focus on the convenience of our location.
  3. Build community relationships and corporate relationships through unique and quality service, a friendly caring atmosphere, and delivering world class service.

5.3.1 Promotion Strategy

Our promotional strategy will be two-fold: first phase promotion will advertising before, during, and six months following our opening; the second phase advertising will deal with long-term advertising.

  1. First Phase Promotions
    • Advertising
      • We will utilize local newspaper, local social magazines, local radio, mail-outs to all households within the immediate 10-mile radius, and mail-outs to all local business within a five-mile radius.
    • Internet
      • We will have a comprehensive website.
    • Alliances
      • We will place our brochure within the offices of our corporate referral clients.
  2. Second Phase Promotions
    • Advertising
      • We will continue to place ads in the local social magazines year around. Mail-outs will be done again within a 10-mile radius one year after takeoff, then again only every three to five years. Radio and television ads will be done only when we have sale promotions during the most stressful time of the year – the holiday season; television ads are not certain, we will evaluate their effectiveness before further implementation.
    • Internet
      • We will continue to have a comprehensive website. After the first six months, and certainly after the first year, we will evaluate the viability of having target clients advertise on our site, and conversely, we will evaluate viability of advertising on our target client website (if applicable).
    • Alliances
      • This type of advertising will be implemented once we have grown beyond our revenue objective. We will also form advertising alliances with any business with whom we share common business goals. We will also implement mutual perks with our business and restaurant neighbors which will aid in local visibility.

5.3.2 Marketing Programs

Owner Cathy Leskie and Jonpaul Leskie will be responsible for marketing Jonpaul’s through the advertising channels. The general manager will be responsible for assisting with the implementation of alliance advertising partnerships. Our advertising budget is $10,000 for the first year. Advertising will begin two weeks prior to opening.

5.3.3 Positioning Statement

We will automatically position ourselves as the top, exclusive gentlemen’s grooming shop in the greater Gigaburb area. Considering that none of the other competitors will offer the range of men’s services that we will, nor that their staffs will be trained like ours, and that there are not any barbershops of our type in our target locations, we will be able to provide services to The Mall populace not currently being tapped.

5.3.4 Pricing Strategy

Our pricing strategy will be similar to that of our competitors. We will not charge over, nor substantially under, standard prices for our services. We will be paying our employees a straight percentage of their total individual client sales plus a bonus–that’s more than our competitors. This will allow us to hire the best employees, and have a built-in motivational factor that will keep them empowered to enhance their opportunity.

5.4 Sales Strategy

  1. Our umbrella sales strategy is to sell Jonpaul’s to the male professional as a uniquely desirable destination that will enhance their lives.
  2. We will sell Jonpaul’s through each employee’s skill, courtesy, and warmth, creating a trusting impression on all clients, and establishing loyalty and return visits. We will ensure each visit to Jonpaul’s is a relaxing and memorable experience, so that clients can always depend on our brand of service when they arrive.

5.4.1 Sales Programs

  1. Our comprehensive brochure will explain the nature of our services, and how this benefits our clients.
  2. Our website will be comprehensively informative of our services, environment and their benefits.

5.4.2 Sales Forecast

The important elements of the Sales Forecasts are shown in the chart and table below. Initial sales forecast indicate first year revenue of  $799,000 increasing to $1.0 million by the end of the second year, then $1.4 million by the end of the third year. These figures are based on revenue from minimum average estimates from barber shop hair styles and additional services, with sales costs reflective of the 45% commission earnings to each barber/therapist.

Mens salon business plan, strategy and implementation summary chart image

Mens salon business plan, strategy and implementation summary chart image

Sales Forecast
Year 1 Year 2 Year 3
Sales
Barber Shop Hair Only Revenue $572,880 $775,680 $1,080,000
Misc. Service i.e. Shave, Shine, Color etc. $156,518 $187,821 $225,385
Product $69,726 $83,671 $100,040
Total Sales $799,124 $1,047,172 $1,405,425
Direct Cost of Sales Year 1 Year 2 Year 3
Barber Shop Hair Only Revenue $255,794 $349,056 $486,000
Misc. Service i.e. Shave, Shine, Color etc. $70,429 $84,519 $101,423
Product $34,868 $41,835 $50,020
Subtotal Direct Cost of Sales $361,091 $475,410 $637,443

5.5 Strategic Alliances

We will form alliances with our referral clients, local restaurants, offices, and businesses who will be strategically beneficial for generating new clients. We will also form alliances with local barber schools and local spas.

5.6 Milestones

The following table lists important store milestones, with dates, implementation duty, and budgets for each. The milestone schedule emphasizes the timeliness for implementation per the sales and marketing targets listed in the detail in the previous topics.

Mens salon business plan, strategy and implementation summary chart image

Milestones
Milestone Start Date End Date Budget Manager Department
Business Plan 1/1/2002 3/1/2002 $0 Jp Leskie Owners
Financial Lending 2/1/2002 3/15/2001 $0 Jp Leskie Owners
Incorporation 3/15/2002 4/1/2002 $350 Jp Leskie Owners
Lease Agreement/Settlement 3/25/2002 4/5/2002 $0 Jp Leskie Owners
Leasehold Improvements 4/5/2002 5/30/2002 $105,000 Cathy/Jp Leskie Owners
Equipment Order/Installed 4/15/2002 5/30/2002 $45,000 Cathy Leskie Owners
Inventory 5/1/2002 5/30/2002 $10,000 Cathy Leskie Owners
Logo Design 3/15/2002 5/1/2002 $1,000 Cathy/Jp Leskie Owners
Business Cards 5/1/2002 5/15/2002 $500 Cathy/Jp Leskie Owners
Brochures 5/1/2002 5/15/2002 $3,000 Cathy/Jp Leskie Owners
Staff Hiring/Training 5/1/2002 5/30/2002 $1,000 Cathy Leskie Owners
Jonpaul’s Grand Opening 6/15/2002 1/15/2003 $0 Cathy/Jp Leskie Owners
Totals $165,850