Skilled Klipz Barbershop

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Skilled KlipzBarbershop

• Michael Andrade Eric Bueno
• 11th Grade
• Age 16

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Business Profile

• Our business is a barbershop, the reason why we
  have selected this as our business idea is
  because we feel that our service would satisfy
  the customers more than anyone else's. We know
  that many people are looking for a barbershop
  with great services and hospitability.
• Type of Business
• Our business is a service.
• We will satisfy a customers need by giving them a
  good service at an affordable price.
• Legal Structure
• Partnership
• Our skills and contacts are expanded, and also we
  can pool resources and get more work done.

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Opportunity

• Define opportunity
• Gives a customers the satisfaction of having
  their hair looking great.
• We get to the point and make it quick.
• We provide refreshments for customers to
  purchase.
• Qualifications
• We will get our barber licenses by 2011.
• We know how to cut hair.
• We know customers and contacts that are barbers.

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Consumer Profile

• By Location
• South end of Hartford
• By Population
• 4
• By Personality
• Clean and presentable people.
• By Behavior
• Loyal customers if good service
• By Income
• Everyone would get a haircut no matter what
  circumstances.

Photo of a consumer
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Competition
Competitor Price Quality Greatest Strength Greatest Weakness
New Cuts 12.00 good Speed Quality
Masterpiece 15.00 good Speed Quality
Skilled Klipz 10.00 good Quality Speed
Competitive Advantage Better quality and a
good persistant speed.
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Marketing Mix

• Price
• Its affordable, brings competition, and makes
  profit.
• Place
• Convenient location, many customers
• Product
• Makes people look presentable, and clean for any
  occasion.
• Promotion
• We will use grand opening sign and word of mouth

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Marketing Plan
Phase Method Description Cost
Awareness Grand opening banner and word of mouth. In front of business one month before opening. 58.00
Purchase Good quality. Good quality to satisfy customers. 0
Retention Good service. Good service would keep the customers loyal. 0
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Cost of Materials/Direct Labor
Definition of One Unit 1 Haircut 1 Haircut
Cost of Sales Per Unit Cost of Sales Per Unit Cost of Sales Per Unit
Direct Labor (Labor Cost per Hour) Time (in hours) to make 1 unit Direct Labor Cost Per Unit
7.65 30 min. or .5 2.52
Total Direct Labor Per Unit Total Direct Labor Per Unit 2.52
Material Description Cost/Total Quantity Cost Per Unit ()
razors 2.50/ 10 .25
gel 1.50/ jar .10
Total Material Cost Per Unit Total Material Cost Per Unit .35
Variable Costs Per Unit Variable Costs Per Unit 0
Cost of Sales Per Unit Cost of Sales Per Unit 2.87
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Economics of 1 Unit
Definition of One Unit Haircut
Selling Price per Unit 10.00
Direct Labor Per Unit 2.52
Materials Per Unit .35
Total COGS Per Unit 2.87
Variable Costs Per Unit (outgoing shipping, packaging, commissions) 0
Total Cost of Sales 2.87
Gross Profit Per Unit 7.13
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Time Management Plan
Business Schedule for a Typical Week Business Schedule for a Typical Week
Entrepreneurship 42
School Hours 37
Work Hours (ex.part time job) 0
Sleep 43
Free-Time Hours 46
Business Schedule for a Typical Week Business Schedule for a Typical Week
Entrepreneurship 42
School Hours 37
Work Hours (ex.part time job) 0
Sleep 45
Free-Time Hours 44
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Average Monthly Fixed Costs
Type of Fixed Cost Monthly Cost
Entrepreneurial Stipend hours x (minimum wage 1 20.00
Utilities 75.00
salaries of employees 300.00
insurance 25.00
rent 730.00
depreciation 4.44
Total Monthly Fixed Costs 1154.44
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Monthly Sales Projections
Month Units Sold
January 500
February 376
March 416
April 460
May 530
June 552
July 560
August 572
September 544
October 540
November 500
December 572
Monthly Break-Even Units Monthly Fixed Costs/Gross Profit Per Unit 163 hair cuts
Total 6122
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Projected Yearly Income Statement
Selling Price Per Unit 10.00
of Units Sold 6122
Total Sales 61,220.00
Total COGS 21,014.14
Other Variable Costs 0
Total Variable Costs 21,014.14
Gross Profit 40,205.86
USAIIRD 13,853.28
Other Costs/Unforeseen 7,000
Total Fixed Costs 19,973.28
Profit before Taxes 20,232.58
Less Estimated Taxes _at_25 5,058.15
Net Profit 15,174.43
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Start-up Investment
Entrepreneurial hours needed for start-up Wage I pay myself Total start-up time investment
17hrs 7.65 130.05
Item Where I will buy this? Cost of Item
Startup cost for barbershop Sally beauty supplies 2200.00
CASH RESERVE covering 3 months of fixed costs CASH RESERVE covering 3 months of fixed costs 3493.32
Business Cards Sign Business Cards Sign 250.00
Estimated TOTAL START-UP INVESTMENT Estimated TOTAL START-UP INVESTMENT 6073.37
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Return On Investment
Return on Investment (ROI) 250
For every 1 dollar invested, my business earned 2.50
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Social Responsibility Plan

• Donate 100 of our sales to the American Cancer
  Society for one day. (600.00 or more)
• Huge banner in the entrance a month in advance
  and spread it through word of mouth. Ask other
  barbers to join for a good cause just for a day.

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Business Educational Goals

• Business
• -Double our customers by the end of the first
  year.
• - Open other locations around the state.

• Educational
• -We both plan to graduate high school with
  honors, and proceed to a 4 year university.
• -In the next about 4 years we plan to be ending
  college and starting on our path to a new life
  with good jobs.

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Got Clips? Skilled Klipz

• Thank you for your consideration ofSkilled
  Klipz

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