Skilled KlipzSkilled KlipzBarbershopBarbershop

Michael Andrade & Eric BuenoMichael Andrade & Eric Bueno

1111th th GradeGrade

Age 16Age 16

Business ProfileBusiness Profile Our business is a barbershop, the reason why we have selected this Our business is a barbershop, the reason why we have selected this

as our business idea is because we feel that our service would as our business idea is because we feel that our service would satisfy the customers more than anyone else's. We know that many satisfy the customers more than anyone else's. We know that many people are looking for a barbershop with great services and people are looking for a barbershop with great services and hospitability. hospitability.

Type of Business : Type of Business : Our business is a service.Our business is a service. We will satisfy a customers need by giving them a good service We will satisfy a customers need by giving them a good service

at an affordable price.at an affordable price.

Legal Structure Legal Structure :: PartnershipPartnership Our skills and contacts are expanded, and also we can pool Our skills and contacts are expanded, and also we can pool

resources and get more work done.resources and get more work done.

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OpportunityOpportunity

Define opportunityDefine opportunity Gives a customers the satisfaction of having their hair Gives a customers the satisfaction of having their hair

looking great.looking great. We get to the point and make it quick.We get to the point and make it quick. We provide refreshments for customers to purchase.We provide refreshments for customers to purchase.

QualificationsQualifications We will get our barber licenses by 2011.We will get our barber licenses by 2011. We know how to cut hair.We know how to cut hair. We know customers and contacts that are barbers.We know customers and contacts that are barbers.

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Consumer ProfileConsumer Profile By LocationBy Location

South end of Hartford South end of Hartford By PopulationBy Population

4+4+ By PersonalityBy Personality

Clean and presentable people.Clean and presentable people. By BehaviorBy Behavior

Loyal customers if good serviceLoyal customers if good service By IncomeBy Income

Everyone would get a haircut no Everyone would get a haircut no matter what circumstances. matter what circumstances.

Photo of a consumer

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CompetitionCompetition

Competitive Advantage • Better quality and a good persistant speed.

CompetitorCompetitor PricePrice QualityQuality Greatest Greatest StrengthStrength

Greatest Greatest WeaknessWeakness

New CutsNew Cuts $12.00$12.00 goodgood SpeedSpeed QualityQuality

MasterpieceMasterpiece $15.00$15.00 goodgood SpeedSpeed QualityQuality

Skilled KlipzSkilled Klipz $10.00$10.00 goodgood QualityQuality SpeedSpeed

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Marketing MixMarketing Mix PPrice: rice:

Its affordable, brings competition, and makes profit.Its affordable, brings competition, and makes profit. PPlace: lace:

Convenient location, many customersConvenient location, many customers PProduct: roduct:

Makes people look presentable, and clean for any Makes people look presentable, and clean for any occasion. occasion.

PPromotion:romotion: We will use grand opening sign and word of mouthWe will use grand opening sign and word of mouth

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Marketing PlanMarketing Plan

PhasePhase MethodMethod DescriptionDescription CostCost

AwarenessAwareness Grand opening Grand opening banner and word banner and word

of mouth.of mouth.

In front of In front of business one business one month before month before

opening.opening.

$58.00$58.00

Purchase Purchase Good quality.Good quality. Good quality to Good quality to satisfy customers.satisfy customers.

$ 0$ 0

RetentionRetention Good service.Good service. Good service Good service would keep the would keep the customers loyal.customers loyal.

$ 0$ 0

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Cost of Materials/Direct Labor Cost of Materials/Direct Labor

Definition of One UnitDefinition of One Unit 1 Haircut1 HaircutCost of Sales Per UnitCost of Sales Per Unit

Direct LaborDirect Labor

(Labor Cost per Hour)(Labor Cost per Hour)

Time (in hours) to make 1 Time (in hours) to make 1 unitunit

Direct Labor Cost Per Direct Labor Cost Per UnitUnit

$ 7.65$ 7.65 30 min. or .530 min. or .5 $ 2.52$ 2.52

Total Direct Labor Per UnitTotal Direct Labor Per Unit $ 2.52$ 2.52

Material DescriptionMaterial Description Cost/Total QuantityCost/Total Quantity Cost Per Unit ($)Cost Per Unit ($)

razorsrazors $2.50/ 10$2.50/ 10 .25.25

gelgel $1.50/ jar$1.50/ jar .10.10

Total Material Cost Per UnitTotal Material Cost Per Unit $ .35$ .35

Variable Costs Per UnitVariable Costs Per Unit $ 0$ 0

Cost of Sales Per UnitCost of Sales Per Unit $ 2.87 $ 2.87

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Economics of 1 Unit Economics of 1 Unit Definition of One UnitDefinition of One Unit HaircutHaircut

Selling Price per UnitSelling Price per Unit $ 10.00$ 10.00

Direct Labor Per UnitDirect Labor Per Unit $ 2.52$ 2.52

Materials Per UnitMaterials Per Unit $ .35$ .35

Total COGS Per UnitTotal COGS Per Unit $ 2.87$ 2.87

Variable Costs Per UnitVariable Costs Per Unit

(outgoing shipping, packaging, (outgoing shipping, packaging, commissions)commissions)

$ 0 $ 0

Total Cost of SalesTotal Cost of Sales $ 2.87$ 2.87

Gross Profit Per UnitGross Profit Per Unit $ 7.13$ 7.13

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Time Management PlanTime Management Plan

Business Schedule for a Business Schedule for a Typical WeekTypical Week

EntrepreneurshipEntrepreneurship 4242

School HoursSchool Hours 3737

Work Hours Work Hours (ex.part time job)(ex.part time job)

00

SleepSleep 4343

Free-Time HoursFree-Time Hours 4646

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Business Schedule for a Business Schedule for a Typical WeekTypical Week

EntrepreneurshipEntrepreneurship 4242

School HoursSchool Hours 3737

Work Hours Work Hours (ex.part time job)(ex.part time job)

00

SleepSleep 4545

Free-Time HoursFree-Time Hours 4444

Average Monthly Fixed CostsAverage Monthly Fixed Costs

Type of Fixed CostType of Fixed Cost Monthly CostMonthly Cost

Entrepreneurial StipendEntrepreneurial Stipend[ hours x (minimum wage + $1][ hours x (minimum wage + $1]

$20.00$20.00

UtilitiesUtilities $75.00$75.00

salaries of employeessalaries of employees $300.00$300.00

insuranceinsurance $25.00$25.00

rentrent $730.00$730.00

depreciationdepreciation $4.44$4.44

Total Monthly Fixed CostsTotal Monthly Fixed Costs $1154.44 $1154.44

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Monthly Sales Monthly Sales ProjectionsProjections

MonthMonth Units SoldUnits Sold

JanuaryJanuary 500500

FebruaryFebruary 376376

MarchMarch 416416

AprilApril 460460

MayMay 530530

JuneJune 552552

JulyJuly 560560

AugustAugust 572572

SeptemberSeptember 544544

OctoberOctober 540540

NovemberNovember 500500

DecemberDecember 572572

Total =6122

0

100

200

300

400

500

600

700

Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

Units sold

Monthly Break-Monthly Break-

Even Units Even Units Monthly Monthly

Fixed Costs/Gross Profit Per UnitFixed Costs/Gross Profit Per Unit

163 hair 163 hair cutscuts

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Selling Price Per UnitSelling Price Per Unit $ 10.00$ 10.00

# of Units Sold# of Units Sold 61226122

Total SalesTotal Sales $61,220.00$61,220.00

Total COGSTotal COGS $21,014.14$21,014.14

Other Variable CostsOther Variable Costs $ 0$ 0

Total Variable CostsTotal Variable Costs $21,014.14$21,014.14

Gross ProfitGross Profit $40,205.86$40,205.86

USAIIRDUSAIIRD $13,853.28$13,853.28

Other Costs/UnforeseenOther Costs/Unforeseen $ 7,000$ 7,000

Total Fixed CostsTotal Fixed Costs $19,973.28$19,973.28

Profit before TaxesProfit before Taxes $20,232.58$20,232.58

Less Estimated Taxes @25%Less Estimated Taxes @25% $ 5,058.15$ 5,058.15

Net ProfitNet Profit $ 15,174.43$ 15,174.43

Projected Yearly Income Projected Yearly Income StatementStatement

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Start-up InvestmentStart-up Investment Entrepreneurial hours Entrepreneurial hours

needed for start-upneeded for start-upWage I pay myself Wage I pay myself Total start-up Total start-up

time investmenttime investment

17hrs17hrs $7.65$7.65 $130.05 $130.05

ItemItem Where I will buy this?Where I will buy this? Cost of ItemCost of Item

Startup cost for Startup cost for barbershopbarbershop

Sally beauty suppliesSally beauty supplies $2200.00$2200.00

CASH RESERVE covering 3 months of fixed CASH RESERVE covering 3 months of fixed costscosts

$3493.32$3493.32

Business Cards & SignBusiness Cards & Sign $250.00 $250.00

Estimated TOTAL START-UP INVESTMENTEstimated TOTAL START-UP INVESTMENT $6073.37$6073.37

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Return On InvestmentReturn On InvestmentReturn on Investment (ROI) Return on Investment (ROI)

250%250%

For every $1 dollar invested, For every $1 dollar invested,

my business earnedmy business earned ::$2.50$2.50

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Social Responsibility PlanSocial Responsibility Plan

Donate 100% of our sales to the American Donate 100% of our sales to the American Cancer Society for one day. ($600.00 or Cancer Society for one day. ($600.00 or more)more)

Huge banner in the entrance a month in Huge banner in the entrance a month in advance and spread it through word of advance and spread it through word of mouth. Ask other barbers to join for a good mouth. Ask other barbers to join for a good cause just for a day.cause just for a day.

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Business & Educational GoalsBusiness & Educational Goals

BusinessBusiness-Double our customers by -Double our customers by

the end of the first year.the end of the first year.

- Open other locations - Open other locations around the state.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 Got Clips? …Skilled Klipz”Klipz”

Thank you for your Thank you for your consideration of…consideration of…

Skilled KlipzSkilled Klipz

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