Business Plan Powerpoint - Operations Management
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ClassyClipsLLP.docxClassy Clips LLP- Business Proposal
Classy Clips is a high end barber shop for men that operates as a limited liability partnership between 6 partners, all equal investors of the company. Aside from the barber service, we provide a customer oriented, high class experience for our clients to make them feel both relaxed and empowered after visiting us. Our employees will all be held responsible for maintaining the image and values of the company. More specifically, their priorities include ensuring high quality, professional hair results, as well as focusing on the customers’ immediate wants and needs to make them feel well accommodated. In order to create the desired atmosphere, we will have a small drink menu, both alcoholic and non-alcoholic, from which our clients can choose from to enjoy a nice beverage during their experience with us. The drinks will be hand selected to discreetly add to the ambiance of the shop. Additionally, we will sell a line of professionally recommended hair products that our clients can choose to purchase upon their visit to us. Because of this, we operate primarily as a service company, but we also make a small profit off of retail items. This will help us in maximizing net income while simultaneously building our brand. One of the most important things to consider for the success of our business is its location. We plan on renting out a space in South Park, Charlotte in order to make ourselves available to our target customers. We feel that this would not only give us the foot traffic that we would need to start off, but this part of the city would also fit the aesthetic vibe of our company as well as the socio-economic demands of our ideal customer.
Our mission is to provide high-end barber services while creating an atmosphere of both comfort and luxury to ensure that our customers can leave feeling more empowered and confident in their own skin. In a materialistic world where everything and everybody is being reduced to their physical form in one way or another, it is important that we can help our customers feel more confident with their appearance to the outside world. A fascinating article in the Huffington Post found ample research that suggests that people often base their perception of social class off of outward appearance. When an individual reported feeling high appearance satisfaction, they believed they belonged to a higher social class. When they reported low appearance satisfaction, they believed the opposite. Furthermore, these individuals also reported thinking that less attractive third party individuals that were introduced to in the study were lower class and the third party attractive individuals were more upper class. This information suggests not only that physical appearance is important for people’s outward impression of your socioeconomic success, but physical appearance is also important for your own perception of yourself. The study also found that “physical attractiveness is tied to the concept of privilege and favored social treatment… [it] confers numerous social advantages” such as earning substantially more and increased chances of getting hired and promoted (Neale). By pampering our clients and making them feel like royalty for an allotted time, we are striving to boost the self of steam of our clients, giving them an air of confidence when they leave. We aim to make our clients look great, and feel even better, in hopes that it will give them a leg up in the society we live in.
Everybody has hair, and with the latest upcoming trends, there is a lot of pressure through social media and other cultural propaganda for both men and women to maintain good grooming practices. There has been a significant increase in advertising for male grooming, and it has been promoting and selling masculinity like never seen before. Forbes states that “the men’s grooming industry was worth $20.3 billion in 2015 and is expected to increase to more than $26 billion by 2020” according to Statica.com. This same industry was plummeting until 2012, suggesting a steadily growing gap in the market for male grooming oriented service companies. With a lot of nice salons geared more strongly towards women, there is a need for these kinds of services for men. Being a barber shop strictly for men, it allows men to lower their guards and enjoy their experience without feeling a need to act a certain way around women. Modern Salon magazine found data that suggested that the majority of men (44%) go to have their hair done at a barber shop as opposed to a hair salon, friend/family, themselves, and other. This presents market opportunity for our business venture.
In addition, they can confidently come to us expecting a high quality haircut because they know we have specialized experience in men’s hair. Thus, we are able to guarantee products, services, and experiences that other types of salons cannot either because their quality is lacking or they are unable to deliver the experience of comfort and luxury that we can. Our target audience is middle class males from 25-45 years old. Men between these ages still have a general high regard for their physical appearance and they are in tune with staying on top of the latest trends. In addition, they are likely making an established income that allows them to fit our upper scale barber shop prices into their price range. Because this age range fits well with the ages of people using social media, we will advertise our company primarily through the use of social media, such as Instagram. We plan to focus on using visual aid as much as possible so that people can get a better feel for what the Classy Clips experience is all about. In terms of getting our business off the ground, we intend to rely on a lot of sales being generated by the foot traffic we receive in the area, followed by word-of-mouth, and referrals. Social media marketing will become more effective in terms of the long term growth of the company, which is where Instagram, Facebook, and sending out local email threads will be more useful.
Our business process is simple. We provide haircuts to men by offering an array of services from fades, comb overs, sheer work, hot towel shaves, etc. The client would come in to our shop and request whichever services appeal to him. During the duration of his haircut we would offer him drinks (alcoholic/non-alcoholic). After the haircut, we’d recommend a variety of products that would compliment the haircut post services rendered. Throughout this process our main objectives are to deliver a comfortable experience, personal relationships, and most importantly make the client feel empowered. Our clients would have to come to our shop. We accept appointments or walk-ins, and they have the capability to request any one of our barbers. We’d then seat the client in the chair and provide any type of services the client wishes to receive. Our biggest dilemma would be developing our client base. We’d obtain new clients either through referrals, instagram promoting via Classy Clips page, or walk-ins. When dealing with a new customer we’d want to ensure their first experience is perfect. Providing great service would warrant another visit from our client hopefully creating a home for his grooming needs.
The strengths within our business include the sole expertise that we provide in the field of men’s high-class haircuts. There is a demand for this niche industry which we are readily able to fulfill. Our employees have many years of experience and know exactly how to please customers, as they are able to keep up with the latest trends and fashions. This allows our customers to feel great and come back wanting more. We are also able to provide a rare service, which sets us apart from other barbershops that we are trying to compete with. In the Charlotte metropolis area, there aren’t any other widely known barbershops that allow men to enjoy a drink, while getting their hair clipped and styled. Inadvertently, this gives us an advantage over other competitors. Our weaknesses may include our initial ability to draw in customers to our business. Many men who are willing to spend more than the average amount on a haircut already have reliable barbers that they go to religiously. This means we will have to compete for customers and bring more to the table in order to win them over. Until we have established a well-known, reliable brand for ourselves, it is going to be hard to acquire the market that we’re going after. Going forward, being able to provide more brick-and-mortar locations across the U.S. will provide our company a huge opportunity that could significantly increase our market reach and income in the future. Obtaining key locations in Los Angeles, CA or New York, NY would allow us to grow our brand name and acquire a larger following of customers. Lastly, haircuts are often a necessity, but luxury haircuts are not. The elasticity of this demand means that if there were to be any kind of recession in the economy, it could severely threaten our business in large waves. Our business targets those of a middle to high social class, and if a recession wipes out the executives, then we will have a hard time staying in business.
In conclusion Classy Clips will advance the hair industry in many ways. The unique aspect of serving drinks while getting a high quality haircut will allow us, the cofounders of Classy Clips LLP, to have an edge on all the rival companies. With the large and steadily increasing demand for haircuts and the atmosphere our employees create, the residents of Charlotte will be attracted to this new state of the art business. In the world today, people’s outward appearance is playing a more integral in society than it ever has before. It is the personal goal of Classy Clips to ensure that our customers have the perfect haircut, which will give them the confidence they need in order to be successful. With the economic success and growth of the Charlotte metropolis area, South Park is the perfect place to start Classy Clips due to the high volume of upper-level employees and businesses that make our services a necessity. Charlotte is a wealthy city that will attract many young to middle-aged men seeking that luxurious look, which is our target market. Charlotte will provide our business with the appropriate foot traffic that we’re looking for in order to get us ahead in our start-up process. As stated earlier, the business is attempting to target men from the age 25-45 because they care so much about their outward personal appearance and they have the income to act on these desires. Since Charlotte is such a huge city, marketing our business will seem almost effortless. Our employees will use word of mouth and social media as platforms to advertise our business. Once the business is broadcasted across all platforms, it is our job to provide the goods and services we promise. Once we gain a strong customer base, our brand will become even more well-known across the city, and will draw in a larger market with the use of social media. Classy Clips’ goal is to compete with other barbershops in the Charlotte area and gain a steady customer base that holds a high class standard for their outward appearance. This will be tough at first, but once customers see our state of the art facilities, services, and superior employees, they will have no choice but to come back to our business. The long term goal of our company is to branch out of Charlotte to other big cities across the nation and grow our customer base as well as our brand name. Once this company establishes itself in other big cities it will change the haircut industry as we know it.
Sources
Source 1: Forbes: Based on Statista reports, the men’s grooming industry was worth $20.3B in 2015 and is expected to increase to more than $26B by 2020.
Source 2: Modern salon found data that the majority of men (44%) prefer to get their hair done at a barber shop
· https://www.modernsalon.com/article/32342/the-2015-mens-grooming-study
Source 3: Impact of appearance on self perception – huffington post
· https://www.huffpost.com/entry/how-your-appearance-is-affecting_b_5628517
