Skilled Klipz Barbershop Michael Andrade Eric Bueno 11

Skilled Klipz Barbershop Michael Andrade & Eric Bueno 11 th Grade Age 16

Business Profile Ø 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. Ø Type of Business : l l Ø Our business is a service. We will satisfy a customers need by giving them a good service at an affordable price. Legal Structure : l l Partnership Our skills and contacts are expanded, and also we can pool resources and get more work done. 1

Opportunity Ø Define opportunity l l l Ø 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 l l l We will get our barber licenses by 2011. We know how to cut hair. We know customers and contacts that are barbers. 2

Consumer Profile Ø Ø Ø By Location l South end of Hartford By Population l 4+ By Personality l Clean and presentable people. By Behavior l Loyal customers if good service By Income Everyone would get a haircut no matter what circumstances. Photo of a consumer 3

Competition Competitor Price Greatest Quality Strength New Cuts Masterpiece Skilled Klipz $12. 00 good Speed Quality $15. 00 good Speed Quality Speed $10. 00 Greatest Weakness Competitive Advantage • Better quality and a good persistant speed. 4

Marketing Mix Ø Price: l Ø Place: l Ø Convenient location, many customers Product: l Ø Its affordable, brings competition, and makes profit. Makes people look presentable, and clean for any occasion. Promotion: l We will use grand opening sign and word of mouth 5

Marketing Plan Phase Method Awareness Grand opening banner and word of mouth. Purchase Good quality. Retention Good service. Description In front of business one month before opening. Good quality to satisfy customers. Good service would keep the customers loyal. Cost $58. 00 $ 0 6

Cost of Materials/Direct Labor Definition of One Unit 1 Haircut Cost of Sales Per Unit Direct Labor (Labor Cost per Hour) $ Time (in hours) to make 1 Direct Labor Cost Per unit Unit 7. 65 Material Description 30 min. or. 5 $ 2. 52 Total Direct Labor Per Unit $ 2. 52 Cost/Total Quantity Cost Per Unit ($) razors $2. 50/ 10 . 25 gel $1. 50/ jar . 10 Total Material Cost Per Unit $ . 35 Variable Costs Per Unit $ 0 Cost of Sales Per Unit $ 2. 87 8

Economics of 1 Unit Definition of One Unit Selling Price per Unit Direct Labor Per Unit Materials Per Unit Total COGS Per Unit Variable Costs Per Unit (outgoing shipping, packaging, commissions) Total Cost of Sales Gross Profit Per Unit Haircut $ 10. 00 $ 2. 52 $. 35 $ 2. 87 $ 0 $ 2. 87 $ 7. 13 9

Time Management Plan Business Schedule for a Typical Week Entrepreneurship 42 School Hours 37 Work Hours (ex. part time job) Sleep 0 0 43 Work Hours (ex. part time job) Sleep 45 Free-Time Hours 46 Free-Time Hours 44 10

Average Monthly Fixed Costs Type of Fixed Cost Monthly Cost Entrepreneurial Stipend $20. 00 [ hours x (minimum wage + $1] Utilities $75. 00 salaries of employees $300. 00 insurance $25. 00 rent $730. 00 depreciation $4. 44 Total Monthly Fixed Costs $1154. 44 11

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 Total Monthly Break. Even Units Monthly 163 hair cuts Fixed Costs/Gross Profit Per Unit =6122 13

Projected Yearly Income Statement Selling Price Per Unit $ # of Units Sold Total Sales 10. 00 6122 $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 @25% $ 5, 058. 15 Net Profit $ 15, 174. 43 14

Start-up Investment Entrepreneurial hours needed for start-up Wage I pay myself 17 hrs $7. 65 Item Where I will buy this? Startup cost for barbershop Sally beauty supplies CASH RESERVE covering 3 months of fixed costs Business Cards & Sign Estimated TOTAL START-UP INVESTMENT Total start-up time investment $130. 05 Cost of Item $2200. 00 $3493. 32 $250. 00 $6073. 37 15

Return On Investment Return on Investment (ROI) For every $1 dollar invested, my business earned : 250% $2. 50 16

Social Responsibility Plan Ø Donate 100% of our sales to the American Cancer Society for one day. ($600. 00 or more) Ø 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. 17

Business & Educational Goals Ø 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. 18

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