G
Inc.




        Gentleman Inc.
       “Male Salon and Spa”

           Heather Tomkinson
              Erin Hurley
             Chris Gartlan
              Bekah Leger
G
Inc.
                   Gentleman Inc is…

       • Exclusively male salon and spa
       • Variety of services and products
              Salon             Spa            Retail
         -   Shampoo      -   Facials   -   Shampoo
         -   Cut          -   Massage   -   Conditioner
         -   Styling      -   Waxing    -   Hair Products
         -   Treatments   -   Nails     -   Skin Care

       • Customer service top priority
       • Comfortable Atmosphere
G
Inc.
             Customer Experience

       • Personalized customer service
         – Customer database
       • Rejuvenation of mind/body
       • Comfortable atmosphere
G
Inc.
G
Inc.
                           Floor Plan

                             massage             nail   waxing



          hair
          salon              massage             nail   facial
                                                        / skin




       laundry              receptionist
       / mgmt.
                  retail
                  store       lounge

                                           tvs
G
Inc.
                      Voice of Customer
       Out of 50 male respondents:

       • 100% indicated appearance was
         extremely important in business
       • Only 34% felt comfortable in a
         female salon
       • 70% expressed interest in a male
         salon
       • 15% or higher expressed interest in
         waxing, manicures, facials,
         pedicures, skin conditioning
G
Inc.
                    Industry Trends

       • Well-Being (i.e. care for self, stress relief)
       • Capitalizing on the Metrosexual
       • Men: $12 billion/year on grooming
         products
       • Men: 49 % of U.S. spending on personal
         care services
         – Spending higher on a per capita basis
       • 29 % of spa clients nationwide are men
       • Industry as a whole undifferentiated and
         fragmented
G
Inc.
                       Target Market
        Male Aged
         20 – 40
        Years Old


          Sales,
       Professional,
       or Executive                       Image Conscious
        Occupation       Initial Target
                                           Open-minded
                            Market
                                             Ambitious
       Income over
         $70,000


        Currently
          Buys
        Grooming
        Products
G
Inc.
                      Marketplace

       2.2 Million Males in Greater Boston Area




          1 Million Fit    850,000 Fit        550,000 Buy
            Income         Occupation          Grooming
             Target          Target             Products




                    Total Initial Target Market:
                          110,000
G
Inc.
                             Competitors
                                 High Variety
                                  of Services

                                                 Gentleman Inc.


                         Spas

                    Salons
         Female                                                  Male
       Atmosphere                                             Atmosphere

                                                 Health
                                                 Centers

                                                     Barber
                                                     Shops
                                Low Variety of
                                  Services
G
Inc.
                         Value Proposition

       - Image and Style                                        - Image and Style
       - Location                    What             What
                                                                - Location
       - Variety of Services        Gen. Inc.       Customers   - Variety of Services
       - Gentleman’s Atmosphere      Offers           Want      - Gentleman’s Atmosphere
       - Service Quality                                        - Quality


                                              What
                                           Competitors
                                              Offer
                                                          - Image
                                                          - Service Quality
            Gap in Marketplace

         - Location
         - Variety of Services
         - Gentleman’s Atmosphere
G
Inc.
                         benefits
       • Comfort
         – Atmosphere
       • Confidence
         – Professional Image
       • Stress Relief
         – Better productivity at work
         – Health benefits
       • More Time
         – Many services in one location
         – Close proximity to work
G
Inc.
                                  Marketing
                   Phase 1:                    Phase 3:
                  Education of                 Expanding
                 Establishment               Customer Base

                                                   1 Year


       Opening                    6 Months
                       Phase 2:                                Phase 4:
                       Establish                            Educate Larger
                    Customer Base                              Market,
                     within Target                            Generate
                        Market                                Customer
                                                               Loyalty
G
Inc.
             Operations Strategy

       • Highest level of quality
       • Experienced professional
         employees
       • Timeliness
G
Inc.
                Operations Strategy
       • Scope of Operations
         – In house
         – Ensures privacy
         – Appointments only
       • Employees
         – Set break and attendance policy
         – Ongoing training (to keep up with trends)
         – Incentive (Commission based pay & Tips)
       • Customer Database
         – Stores contact info & personal preferences
G
Inc.
                        Capacity Calculations
       • Hours per Weekday = 14        Total Weekday Daily Capacity = 252
       • Hours per Weekend = 8         Total Weekend Daily Capacity = 144
       • Weekly Capacity = 1,404       Monthly Capacity = 5,616

       Sample Weekday Capacity Calculation:

                           Time per     # Service   Capacity
                            Station     Providers
                 hair         0.75            3         56

              massage          1.5            2         19

               facials        0.75            2         37

               waxing          0.5            2         56

             Manicures         0.5            2         56

              pedicures          1            2         28
G
Inc.
                        Development
       • Acquire property (primary concern)
       • Hire attorney
          – Secure location; paperwork on licenses
       • Hire accountant
          – Business incorporation; keep start-up expenses and
            financials together
       • Renovations
       • Operating systems refined
       • Hire stylists and technicians
          – Experienced and reputable
          – Train employees
       • Opening
G
Inc.
                    Assumptions

       • Start – Up Costs
         – $ 463,700
           • Mostly equipment and renovations
       • Revenue Growth
         – 10% first 6 mon. 20% 6 – 12 mon.
         – 40% year 2       50% years 3 - 4
       • Cost of Sales
         – 50%
           • Commission and retail cost of sales
G
Inc.
                                 Expected Returns
                                     Expected Returns

                                     Revenues   Net Income   Cashflow

                    3,500,000
                    3,000,000
                    2,500,000
       Amount ($)




                    2,000,000
                    1,500,000
                    1,000,000
                     500,000
                            0
                     (500,000)   1     2          3          4          5
                                                Year
G
Inc.
                     Critical Risks

       • Internal
         – Skilled Professionals
         – Walk – in vs. Appointment
         – Cash Flow
       • External
         –   Location
         –   Customer Interest
         –   Effective Education Marketing
         –   Competitors
G
Inc.




             Thank You

       Questions and Comments

Student Project: Business Plan Presentation in 2004

  • 1.
    G Inc. Gentleman Inc. “Male Salon and Spa” Heather Tomkinson Erin Hurley Chris Gartlan Bekah Leger
  • 2.
    G Inc. Gentleman Inc is… • Exclusively male salon and spa • Variety of services and products Salon Spa Retail - Shampoo - Facials - Shampoo - Cut - Massage - Conditioner - Styling - Waxing - Hair Products - Treatments - Nails - Skin Care • Customer service top priority • Comfortable Atmosphere
  • 3.
    G Inc. Customer Experience • Personalized customer service – Customer database • Rejuvenation of mind/body • Comfortable atmosphere
  • 4.
  • 5.
    G Inc. Floor Plan massage nail waxing hair salon massage nail facial / skin laundry receptionist / mgmt. retail store lounge tvs
  • 6.
    G Inc. Voice of Customer Out of 50 male respondents: • 100% indicated appearance was extremely important in business • Only 34% felt comfortable in a female salon • 70% expressed interest in a male salon • 15% or higher expressed interest in waxing, manicures, facials, pedicures, skin conditioning
  • 7.
    G Inc. Industry Trends • Well-Being (i.e. care for self, stress relief) • Capitalizing on the Metrosexual • Men: $12 billion/year on grooming products • Men: 49 % of U.S. spending on personal care services – Spending higher on a per capita basis • 29 % of spa clients nationwide are men • Industry as a whole undifferentiated and fragmented
  • 8.
    G Inc. Target Market Male Aged 20 – 40 Years Old Sales, Professional, or Executive Image Conscious Occupation Initial Target Open-minded Market Ambitious Income over $70,000 Currently Buys Grooming Products
  • 9.
    G Inc. Marketplace 2.2 Million Males in Greater Boston Area 1 Million Fit 850,000 Fit 550,000 Buy Income Occupation Grooming Target Target Products Total Initial Target Market: 110,000
  • 10.
    G Inc. Competitors High Variety of Services Gentleman Inc. Spas Salons Female Male Atmosphere Atmosphere Health Centers Barber Shops Low Variety of Services
  • 11.
    G Inc. Value Proposition - Image and Style - Image and Style - Location What What - Location - Variety of Services Gen. Inc. Customers - Variety of Services - Gentleman’s Atmosphere Offers Want - Gentleman’s Atmosphere - Service Quality - Quality What Competitors Offer - Image - Service Quality Gap in Marketplace - Location - Variety of Services - Gentleman’s Atmosphere
  • 12.
    G Inc. benefits • Comfort – Atmosphere • Confidence – Professional Image • Stress Relief – Better productivity at work – Health benefits • More Time – Many services in one location – Close proximity to work
  • 13.
    G Inc. Marketing Phase 1: Phase 3: Education of Expanding Establishment Customer Base 1 Year Opening 6 Months Phase 2: Phase 4: Establish Educate Larger Customer Base Market, within Target Generate Market Customer Loyalty
  • 14.
    G Inc. Operations Strategy • Highest level of quality • Experienced professional employees • Timeliness
  • 15.
    G Inc. Operations Strategy • Scope of Operations – In house – Ensures privacy – Appointments only • Employees – Set break and attendance policy – Ongoing training (to keep up with trends) – Incentive (Commission based pay & Tips) • Customer Database – Stores contact info & personal preferences
  • 16.
    G Inc. Capacity Calculations • Hours per Weekday = 14 Total Weekday Daily Capacity = 252 • Hours per Weekend = 8 Total Weekend Daily Capacity = 144 • Weekly Capacity = 1,404 Monthly Capacity = 5,616 Sample Weekday Capacity Calculation: Time per # Service Capacity Station Providers hair 0.75 3 56 massage 1.5 2 19 facials 0.75 2 37 waxing 0.5 2 56 Manicures 0.5 2 56 pedicures 1 2 28
  • 17.
    G Inc. Development • Acquire property (primary concern) • Hire attorney – Secure location; paperwork on licenses • Hire accountant – Business incorporation; keep start-up expenses and financials together • Renovations • Operating systems refined • Hire stylists and technicians – Experienced and reputable – Train employees • Opening
  • 18.
    G Inc. Assumptions • Start – Up Costs – $ 463,700 • Mostly equipment and renovations • Revenue Growth – 10% first 6 mon. 20% 6 – 12 mon. – 40% year 2 50% years 3 - 4 • Cost of Sales – 50% • Commission and retail cost of sales
  • 19.
    G Inc. Expected Returns Expected Returns Revenues Net Income Cashflow 3,500,000 3,000,000 2,500,000 Amount ($) 2,000,000 1,500,000 1,000,000 500,000 0 (500,000) 1 2 3 4 5 Year
  • 20.
    G Inc. Critical Risks • Internal – Skilled Professionals – Walk – in vs. Appointment – Cash Flow • External – Location – Customer Interest – Effective Education Marketing – Competitors
  • 21.
    G Inc. Thank You Questions and Comments