First impressions are everything. A good haircut is key to making a good impression. Not everyone can afford to spend a few hundred dollars and a few hours on a haircut. Many families have budget constraints and need an affordable place to go.
Solution
Cranium Filament Reductions provides superior customer attention in the "quick salon" space. This is important because quick salons aim to serve many customers despite lower margins.
Market
The hair styling industry is highly competitive, with national chains like Regis Corporation and thousands of smaller salons. Customers have significant leverage due to low switching costs. However, most companies pursue only one strategy to gain market share. Cranium believes it can offer a differentiated service through improved customer service without increasing costs.
Competition
The buying patterns of men and women differ. Men are more price or convenience sensitive, while women bond more with their stylists. Cranium will target both by offering convenience and affordable prices, while also providing sophisticated, ultra-hip styling for women. For families, Cranium will cater to children with toys, child-friendly stylists, and discounted prices for their fast-growing hair.
Why Us?
Cranium Filament Reductions’ mission is to provide reasonably priced, convenient hair styling that exceeds customer expectations.
Expectations
Forecast
Cranium Filament Reductions is a service-based business that provides a good way for its employees to make a living without generating high profitability.
Financial Highlights by Year
Financing Needed
The financing needed is $105,000, including a $45,000 loan and owner investment of $60,000.
Opportunity
Problem & Solution
Problem Worth Solving
A good haircut is key to making a good impression, but not everyone can afford an expensive one. Families need an affordable place to go.
Our Solution
Cranium Filament Reductions is a hair salon that satisfies the hair needs of the entire family in one convenient visit.
Many quick salons only provide basic services, while upscale salons can be expensive and inconvenient. Cranium fills the gap by offering affordable, flexible services with strong customer attention. This strategy will gain market share and establish long-term relationships with clients.
Target Market
Market Size & Segments
Cranium Filament Reductions will target three groups separately:
– Males who prefer quick, convenient service with evening hours and no appointments necessary.
– Females who desire upscale styling without the high price.
– Mothers with children who need child-friendly stylists and discounted rates for fast-growing hair.
Competition
Current Alternatives
Cranium Filament Reductions’ competitors include:
– Traditional barbers, who provide inexpensive and convenient haircuts but typically have conservative styling and long wait times.
The buying patterns of men and women differ. Men prioritize price and convenience, while women bond with their stylists and are more loyal. Cranium’s competitive edge is superior customer service, which is important in the quick salon space.
Keys to Success
Keys to Success
Our keys to success are:
- Exceeding customer expectations through exceptional service.
- Increasing client base by at least 20% per year through superior performance and word-of-mouth referrals.
- Contributing to the employment of community residents and building a sustainable start-up business.
Execution
Marketing & Sales
Marketing Plan
Cranium Filament Reductions will be located in a high-exposure shopping center in Shaker Hts., OH. The center association will draw traffic to the salon through common area marketing. Flyers will be sent out with the local newspaper, and in-store promotions, discounts, and customer referrals will be utilized.
We will also have a strong social media presence, offering style tips, local information, occasional humor, and engaging content that helps people get to know, like, and trust us.
Sales Plan
Cranium Filament Reductions’ sales strategy focuses on professional interactions with customers. Training will emphasize seizing opportunities to impress customers. Additionally, retail hair care products will be offered with deep discounts and a commission structure for employees to generate good sales.
Operations
Location and Equipment
Cranium Filament Reductions will be a storefront with 1500 square feet that includes a waiting area, magazines, hair product displays, a reception desk, 3 hairdressing chairs, 3 washing stations, one computer, and one cash machine.
Hello!
I’m Andrew Brooks, a seasoned finance consultant from the USA and the mind behind phonenumber247.com.
My career is built on a foundation of helping individuals and businesses thrive financially in an ever-changing economic landscape. At phonenumber247.com, my aim is to demystify the complex world of finance, providing clear, actionable advice that can help you navigate your financial journey with confidence. Whether it’s personal finance management, investment strategies, or understanding the nuances of market dynamics, I’m here to share insights and tools that can propel you towards your financial goals.
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