Campus Cuts is a business that will provide haircutting services to male students at Butler University by partnering with Paul Mitchell The School of Indianapolis. Through this partnership, Campus Cuts can utilize cosmetology students to cut hair at no labor costs. Campus Cuts conducted market research that found 96% of students would utilize haircutting services on campus. Campus Cuts plans to operate every Sunday afternoon in locations around campus such as Atherton Union and fraternity houses. With no labor costs and a $10 per haircut price point, Campus Cuts is projected to earn a profit of $1,342 cutting hair for 203 students in the fall semester.

1. 1
Business Plan
Alec Ahlden, Jeff Schank, Connor Dudley, Bridget Blossom, Mike Hoeing
RBE Prof. Finn
April 7, 2015

2. 2
Table of Contents
Executive Summary……………………………………………………….3
Relationship……………………………………………………………….4
Management Team………………………………………………..............4
Primary & Secondary Research…………………………………………..4
Proof of Concept/Operation……………………………………………....5
Target Market……………………………………………………………..5
Competitor Analysis……………………………………………………....6
Promotion…………………………………………………………………6
Financial Plan…………………………………………………………..7-9
Financial Highlights………………………………………………7
Assumptions………………………………………………………7
Cash Flows………………………………………………………..8
Unit Cost/Profitablilit…………………………………………….8
Sensitivity Analysis………………………………………………8-9
Why Invest?………………………………………………………………9
Sources…………………………………………………………………....10
Exhibits…………………………………………………………………...11

3. 3
Executive Summary:
Campus Cuts is a business working with Paul Mitchell the School of Indianapolis to bring
cosmetologists to Butler University’s Campus to cut men’s hair. Because of the relationship with
a cosmetology school, Campus Cuts has no expense to pay the stylists because they cannot
accept money for haircuts until they receive their licenses.
The financial analysis of Campus Cuts highlights the profitability and health of the business.
Campus Cuts is profitable because there are no costs of goods sold, a high gross margin, little
fixed expenses, and a high profit margin. The company projects to complete a total of 203
haircuts over the course of the fall semester. With 203 haircuts, Campus Cuts will make a profit
of $1,342. Campus Cuts will charge $10 per haircut, which is what Paul Mitchell the School of
Indianapolis charges for male haircuts on site at the cosmetology school. Because the company
has no cost of merchandise sold, the gross margin is 100% per haircut, which helps the business
maintain a strong bottom line.
The relationship with Paul Mitchell the School of Indianapolis is extremely beneficial for
Campus Cuts because there is no hourly wage expense and all the students purchase supply kits
as a part of their tuition. Because the students will bring their kits to Butler, Campus Cuts does
not have high start up costs to purchase clippers, scissors, etc. The company will have a total of
$150 for advertising expenses and $40 of salary expenses per operation date. Additionally, the
company will also need to pay a 2.75% expense to Square for all credit card transactions.
Campus Cuts is an attractive investment because of the low expenses leading to a high profit.
Campus Cuts will request a $100 loan to operate during the fall semester. The breakeven point is
15 haircuts or $150 in sales, which will allow the company to repay its loan within two weeks of
operation. According to First Research, the industry average profit margin for the hair care
services industry is 3.1% (“Hair Care Services”). Campus Cuts has a profit margin of 64.5%
because there are no overhead costs or salary expenses for the stylists, making the company an
extremely attractive investment.
With low startup costs and no variable expenses, Campus Cuts will be profitable during the fall
semester. Campus Cuts aims to be a convenient hair salon for Butler University students by
eliminating the problem of driving off campus just to get a haircut; moreover, Campus Cuts
strives to be the go-to salon for students by the end of the fall semester. With low startup costs
and few expenses throughout operations, Campus Cuts will be extremely profitable and is a
worthy investment.

4. 4
Relationship
Campus Cuts has established a relationship with Paul Mitchell the School of Indianapolis. With
this business model, the company will have no hourly wage expense because the stylists are still
cosmetology students, so they cannot legally accept payment. Campus Cuts plans to work with
Paul Mitchell the School because of the profitability of using cosmetology students and the high
level of brand equity surrounding the Paul Mitchell brand. Campus Cuts will help the Paul
Mitchell students fulfill their required 1500 hours of practice so they can receive their license, as
well as help them begin to build up a strong clientele base. With benefits for both parties,
Campus Cuts believes this relationship will lead to sustainable success for our company.
Management Team
Primary/Secondary Research
Campus Cuts provides haircuts to college students on Butler’s campus; therefore, the company
will enter the hair care services industry. The industry is extremely diverse, with both large
franchises and small town salons comprising the market. Trends state demand depends on
consumer spending and success is tied to marketing strategy and technical expertise (“Hair Care
Services”). According to First Research, “the US hair care services industry includes about
80,000 establishments (76,000 beauty salons; 4,000 barber shops) with combined annual revenue
of about $20 billion” (“Hair Care Services”). Although there are many competitors, the industry
is extremely lucrative. First Research also states, “Competition is strongest at the lower end of
the business, where price and location make a big difference” (“Hair Care Services”).
In order to conduct primary market research, Campus Cuts sent out a survey to Butler University
students to address the following: gender, year in school, how often they get their haircut, the
price they currently pay for haircuts, where they would prefer to get their haircut on campus,and
what services they would be interested in. Based on 100 responses to the survey, 96.1% of
students would be willing to get their haircuts on campus. This data also concludes the idea of a
hair salon on campus is viable and is desired by the market. The women who responded pay
between $10-$150 for a haircut, where the men who responded pay between $10-$30 for a
haircut. The following charts display how often men get haircuts and much they currently pay to
get their haircut.

5. 5
0 5 10 15 20 25
Longer Than 2 Months
Every Other Month
Twice a Month
Once a Month
How Often Men Get Haircuts
Operations
During the Proof of Concept (PoC), Campus Cuts proved the viability of a haircutting business
on Butler’s campus. Campus Cuts operated twice during the PoC: Sunday March 22 and Sunday
March 29. Based on our survey results, 39% of students responded they would prefer to receive
haircuts in Atherton Union, so operations were held in Atherton Union from 3pm-7pm on both
dates. While operating, the company brought in four stylists from Paul Mitchell the School to cut
hair for each operation date. When the stylists come to campus, they bring their hair kit they
purchased from Paul Mitchell, which includes: clippers, scissors, mirrors, as well as all necessary
cleaning supplies.
While Campus Cuts does accept walk ins, students can make reservations ahead of time using
the website www.campuscuts.youcanbook.me. On the website, students can select the specific
time slot for when they would like to get their haircut on their preferred date. The website will
also automatically send students a reminder via email of their haircuts two hours before their
appointment. When students arrive in Atherton Union Room 302, Campus Cuts streams their
choice of music, television shows, or sports. For example, the PoC was operated during NCAA
March Madness, so Campus Cuts streamed live basketball games during operation.
After students receive their haircut, they have the option to pay with cash or credit/debit card.
With the Square app, students have the ability to pay via credit/debit card. The Square app is an
electronic payment service that deposits payments into the Campus Cuts savings account.
In the fall, Campus Cuts will operate every Sunday from 3pm-7pm. Operations locations will
vary between Atherton Union and fraternity houses. When we conducted primary market
research, 52% of students preferred to have Campus Cuts come directly to their respective
fraternity and 39% of students preferred to have Campus Cuts in Atherton Union. Due to
Campus Cuts only operating twice, we chose to operate in Atherton Union both times so we
could include the entire campus.
0
10
20
30
$0 $10-12 $13-15 $16-20 21+
NumberofPeople
Price Ranges
Average Price Men Pay For
Haircuts

6. 6
Target Market
Campus Cuts’ main customers will initially be male Butler students. These students usually
range from the ages of 18-22. By specifically reaching the male student body, Campus Cuts is
implementing lean concepts into the business. Furthermore, Campus Cuts’ market research
suggests that males get their haircut more frequently than females. According to our survey,
47.54% of males get their haircut at least once a month and only 2.86% of females respectively,
it makes more sense to focus services on men in order to build loyalty quicker. Our archetype
customer is a new student to campus who is searching for a reliable, convenient place to get their
haircut. Freshmen in college are ideal because they have been using the same stylist or barber
back home for years, and now that the student is in a new city they are looking to establish a
relationship with a new hair salon. Campus Cuts will provide these customers with a quality
haircut that is right on campus, which makes their experience much more convenient for them.
Competitor Analysis
Company
Name
Strengths Weaknesses Pricing Promotion
Distance
from
Butler
Campus
Cuts
 Convenience
 On campus customer
base
 New to market
 No customer
loyalty
$13  Internet/Social
Media
 Word of Mouth
 Coupons/Discounts
0 miles
Sports Clips  Well known
 Sports entertainment
on TV
 Weak female
market
 Consistency
$17  Local Radio
 Co-op Advertising
4.8 miles
Great Clips  National recognition
 Large customer base
 Consistency $13  Broadcasting media
 Co-op Advertising
2.8 miles
Bogie’s
Barbershop
 Local barber
 Customer friendly
 One barber
 Weak female
market
$13  Facebook Page
 Word of Mouth
2.1 miles
Promotion

7. 7
In order to promote effectively, Campus Cuts will promote to customers through the use of social
media, as it is highly used by our target market. As seen in the pictures above, we plan to utilize
sites such as Facebook and Twitter in order to maintain a high customer interaction within our
targeted age group. Through this promotional technique, we will be able to gain brand
recognition, and word of mouth advertising to begin. By creating Twitter and Facebook
accounts, Campus Cuts plans to have giveaways for customers that post a picture of their new
hair cut and tag the company in their post. For example, by giving customers the ability to save
$2.00 by sharing the Campus Cuts Facebook page, their 1,000 friends now know about the
business and it costs Campus Cuts practically nothing. Additionally, social media gives the
company a chance to communicate and interact with customers.
Financial Operation Plan
Fall 2015 Practicum Forecasted Financial Highlights
Total Revenue $2,081
Total Expenses $739
Gross Profit Margin 100%
Net Profit $1,342
Break Even Point 15 haircuts
Assumptions
In our initial assumptions for the Fall of ’15 we plan to continue to offer $10 haircuts. We will be
operating once a week for four hours, for a total of 15 operations dates in the fall. Paul Mitchell
the School of Indianapolis will provide 4 stylists for each operation date. The first three weeks of
the semester we expect to have lower sales because students will have already gotten their
haircut at the end of summer. From the week of 9/21 until fall break we plan to give 15 haircuts
per week, which is a fair assumption as we gave 14 haircuts in our first POC day of operation.
After fall break, with the help of $150 dollars in advertising, we plan to increase our haircuts to
20 per week. The week of 11/23 we will not be operating at all due to Thanksgiving.
Furthermore, we plan to pay one employee $10 an hour to help facilitate on days of operation.
On the financial worksheet, we assume 50% of customers will pay with cash and 50% will pay
with credit/debit via Square, an electronic payment service. Campus Cuts will charge customers
paying with credit/debit cards $10.50 per haircut, to account for the 2.75% service charge.
Because of this, the sales price per unit is $10.25 on the financial worksheet and there is a
variable expense for 2.75% on 50% of our sales.

8. 8
Cash Flows
To the left lies our cash flow per week during the fall
semester. Campus Cuts has a very steady cash flow. The first
couple of weeks we do not project to provide many haircuts,
since people will have already gotten haircuts at the end of
summer. Overall we plan to give a total of 203 haircuts or
13.4 per week, at a price of $10. Based upon our initial
survey, the majority of people get a haircut every 4 weeks,
which allows us to have a continuous and consistent
turnaround, helping create a healthy cash flow.
Unit Cost/Profitability
In our relationship with Paul Mitchell, we as Campus Cuts do not pay our stylists. As a tradeoff
we are providing the stylists with service hours, as they need a total of 1,500 to become certified
in Indiana. The stylists who are sent, are nearing their completed number of hours, to ensure the
customers maximum quality. For the fall semester we project to have a total of 203 haircuts, for
a total revenue of $2,081 ($10 per cut). Our only variable costs for the year will be the salary we
pay our employee to facilitate haircut operations and the square expense. We plan to operate for
a total of 56 hours, for a variable salary expense of $560. Assuming 50% of customers pay with
credit or debit cards, there will be a $29 total Square expense. Our unit cost and profitability,
which can be seen below are based on the projected numbers of next semester.
Cost Per Unit: $3.55 Profit per Unit: $6.45 (64.5%)
8/31 - $100
9/7 - $1
9/14 - $76
9/21 - $152
9/28 - $152
10/5 - $151
10/12 - $101
10/19 - $56
10/26 - $152
11/2 - $202
11/9 - $202
11/16 - $152
11/23 - $0
11/30 - $203
12/7 - $202

9. 9
Sensitivity Analysis
POC Conservative Ideal Aggressive
Total Cuts 22 152 203 305
Total Sales $226 $1,558 $2,081 3,126
Salary Expense $70 $560 $560 $1,120
Square Expense $3 $21 $29 $43
Fixed Expense
(Advertising)
- - $150 $150
Net Income $153 $977 $1,342 $1,813
Break Even Point N/A N/A 15 haircuts 15 haircuts
In our sensitivity analysis, our ideal column is the one we created originally on our Excel
template and it is used throughout the rest of this financial plan. Our aggressive approach is
based off possible expansion to the nearby campuses. Our total sales increases by 50%, and
salary expense would double. This ratio disparity is because we do not physically know as many
students on these other campuses as we do Butler students, so we do not predict to give as many
haircuts per hour of labor. The conservative side of the analysis would eliminate advertising
expenses, as we would advertise solely on social media. The conservative approach would not
generate as much in sales, but we would make a profit on the first haircut.
Why Invest?
Campus Cuts financial situation is ideal for any investor. Because of our relationship with the
Paul Mitchell School, we are able to provide campuses with low cost, quality haircuts. With a
break-even point of 15 haircuts, we will be making profit by our third day of operation. For each
haircut past our break-even point, we will make a profit of $6.45. We are fortunate enough to be
in a good geographic location that includes several college campuses. The ability to expand into
these new markets, makes us attractive to new investors. Campus Cuts will become the cut
students can trust away from home.

10. 10
Works Cited
"Bogie's Barber Shop - Indianapolis, IN - Prices, Hours, Reviews." Locality. N.p., n.d. Web. 14
Feb. 2015.
"Butler University." Butler University. N.p., n.d. Web. 14 Feb. 2015.
"Great Clips Hair Cut Salon - Broad Ripple Center - Indianapolis IN 46220." Great Clips Hair
Cut Salon - Broad Ripple Center - Indianapolis IN 46220. N.p., n.d. Web. 14 Feb. 2015.
"Great Clips Salaries." Glassdoor. N.p., n.d. Web. 14 Feb. 2015.
"Hair Care Services." First Research. Hoover's Inc., 9 Feb. 15. Web. 16 Feb. 15.
<http://mergent.firstresearchlearn.com/industry_detail.aspx?pid=117&chapter=1>.
"Sport Clips Haircuts for Men." Haircuts for Men, Barber, Walk-Ins Welcome. N.p., n.d. Web.
15 Feb. 2015.
"Sport Clips Hourly Pay." Glassdoor. N.p., n.d. Web. 14 Feb. 2015.
"39-5012 Hairdressers, Hairstylists, and Cosmetologists." U.S. Bureau of Labor Statistics. U.S.
Bureau of Labor Statistics, n.d. Web. 14 Feb. 2015.

11. 11
Exhibits