Professional Documents
Culture Documents
Executive Summary
The Aquino Group (AG) is an Oklahoma based company with management having
extensive experience in the service industry, customer service and training. AG was formed as a
result of extensive research into nationally based franchise opportunities. After careful review
the Regis Hair Salon’s Corporate family was determined to be the first priority for solicitation.
First, Regis has a history of success in the industry. Regis is nearly ten times larger than
its’ competitors; as a result, Regis is the market leader in the hair salon industry. Second, Regis
has a successful brand image that welcomes a customer base from across the nation. Having a
nationally known, accepted and trusted brand image provides AG with increased factors for
success; resulting in faster start-up, smoother cash flow and ease of recruitment for staff. Third,
this branding allows for quality nationally based marketing programs that cater to the local
markets. This factor alone would be cost prohibitive for any small operator breaking into a local
market. Staff Training is the fourth factor. Regis hosts the industry's best stylist education and
training - including educational videos, nationwide seminars and experienced artistic directors.
Again this would not be possible for any small start-up. And finally the product Regis delivers is
high quality!
The Aquino Group is in the process of identifying locations in Kansas City for as many
as 5 new Super Cuts Hair Salons. The Super Cuts concept of entering the male hairstyling
market and allowing a standard salon to more than double its sources of revenue is by far the
most appealing feature of Super Cuts and AG sees this as an opportunity to develop further.
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The Aquino Group:
Business Plan: Regis Hair Salons
Prepared by: Scott Aquino, December 2009
Organizational Structure
The proposed remote operation of multiple salons in the Kansas City area from
Oklahoma City is possible today due to the use of technology as well as on-site senior
management. The Managing Partner and Marketing Manager will travel to Kansas City on a
regular basis. The initial set up of new salons will require weekly travel. This will be the norm
until operations are up and running, staff hired and an Area-Wide Manager is trained and secure
in his/her position. Aside from recruiting staff the Managing Partner in conjunction with Regis
Corporate Offices will identify multiple locations for Phase I and Phase II of operations build-
out. Phase I include the opening of four salons under the supervision of one General Manager
and the Area Wide Manager. Phase II will begin once the initial salons are open and operating at
a successful level Phase II which includes the identification of another possible four salon
locations and the build-out and staffing of those salons. In each instance the direct “hands-on”
participation of the Managing Partner will be readily seen. Initially staff will travel to Kansas
City and stay in area hotels. Once locations are determined it may be possible for AG to either
purchase or lease a condo in the area which will provide Oklahoma City staff with easy access to
the salons.
A major priority will be the hiring of the Area-Wide Manager. This person will be local
and once trained will be directly responsible for the on-going operations of the AG Kansas City
Salons. AG understand the value of personal “BUY-IN” and will develop a salary, bonus and
ownership package that will be very appealing to possible candidates. The current thought is to
provide profit sharing bonuses for the first three years of operation followed by ownership of 5%
in year four and 7.5% in year six. This will be developed with opportunity to “buy-back” shares
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The Aquino Group:
Business Plan: Regis Hair Salons
Prepared by: Scott Aquino, December 2009
The following is a proposed Organizational Chart for AG Super Cut Salons in Kansas
City.
REGIS
Salon
Corporate Offices
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The Aquino Group:
Business Plan: Regis Hair Salons
Prepared by: Scott Aquino, December 2009
generate combined annual sales of $16 billion. Large companies include Regis Corporation and
Ratner Companies. The industry is highly fragmented: the 50 largest companies hold just 15
percent of the market. The large majority of salons are independently owned. A large salon has
annual revenue of about $300,000 and 10 employees. Demand is partly driven by demographics
and partly by population growth. The profitability of individual companies depends on technical
expertise and marketing skills. Big companies have few advantages over small ones, which is
why the industry remains fragmented. Small companies can compete successfully through
technical superiority or favorable location. The industry is highly labor-intensive: average annual
revenue per employee is just $35,000. Regis holds over 12,000 salons with Super Cuts holding
approximately 2,000.
A typical salon offers haircutting and styling, coloring, shampooing, and permanents. Some
salons also offer nail care, facial treatments, makeup, bikini waxing, massage, tanning, and other
types of spa treatments, but the lower volume of demand for such specialty services often makes
them uneconomical. Sales of hair care products are an important revenue source for many salons,
providing from 5 to 40 percent of revenue. Gross margins are higher for hair care products than
for services. The average salon occupies about 1,500 square feet and is located in a mall.
Beauty salons are personal services businesses which provide cosmetic or other treatments for
men and women. A significant percentage of workers work out of their homes or rent space
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The Aquino Group:
Business Plan: Regis Hair Salons
Prepared by: Scott Aquino, December 2009
Favorable Demographics
The large Baby Boom generation is now at the age when income is highest and hair is
graying. Older women and men, who drive most of the demand for higher-end hair care services,
are increasing their use of color to hide gray hair and also have the means to pay for it.
about a quarter of the clientèle at unisex salons. The differences between a salon and a
barbershop are many: for barbers, no appointments are needed, and they're generally cheaper
with fewer value-added services like styling and salon-style products. A new salon format for an
upscale men-only club-style salon is taking hold in New York, complete with leather chairs,
TVs, cigars, pool tables, and a bar. SuperCuts has developed a model that provides a gender
Salon Success
Once firmly established with good stylists and loyal clients, many salons seem to have a better
long-term survival rate than the average business. More than half of salon owners surveyed say
they have owned their current business for 10 years or more. According to the Small Business
Administration (SBA), more than half of all new businesses fail within four years. The industry
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The Aquino Group:
Business Plan: Regis Hair Salons
Prepared by: Scott Aquino, December 2009
Marketing
Market Definition
According to the Occupational Outlook Quarterly, published by the U.S. Department of
Labor, it shows cosmetology as a steadily growing occupation in the U.S. through 2005.
However, the Department of Labor also shows cosmetologists as number 37 fastest growing
occupations in the U.S. This is because Baby Boomers are youth oriented and will be the driving
force for our industry for the next 20 years. Generation X is the target we are going after but the
Baby Boomers will be paying the way. Wellness, relaxation, and nurturing the soul will
recognizing the billions of dollars consumers spend each year in our industry and they are buying
up the major manufacturers. Redken was bought by Cosimar, Matrix by Proctor and Gamble to
relieving treatments replace the 1980s party scene and corporate rewards are given with "Day of
Beauty" packages. The overall market demands quality service at a fair price.
Future Opportunities
As our client base builds in the local market, targeting marketing to the tourism trade will
bring new opportunities. This could be carried through with lodging businesses. Still another
opportunity involves providing custom packages for special groups. "Sweet Sixteen" parties,
stress-relieving treatments that travel to corporations or participate with the American Cancer
Society program "Look Good, Feel Good," teaching cancer victims how to address hair loss.
Marketing Plan
The Marketing program will operate from Oklahoma City utilizing Kansas City area
advertisement outlets such as radio, television and print. The Marketing Manager will work as a
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The Aquino Group:
Business Plan: Regis Hair Salons
Prepared by: Scott Aquino, December 2009
team member with Regis corporate staff, the Area wide Manager and General Mangers
identifying opportunities to promote the Regis brand and improve overall knowledge and
understanding of the products and services available through Regis Salons. AG will work
closely with Regis Corporate Marketing to develop a plan to reach new clients and provide
quality services. As in any venture Location Location Location is paramount. AG will research
areas for development of the salons. Once developed the specific demographics of those areas
will be incorporated into the Strategic Marketing Plan. The following is a map of Regis Salons
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The Aquino Group:
Business Plan: Regis Hair Salons
Prepared by: Scott Aquino, December 2009
Market Environment
"With high-tech there must be high touch," says John Nesbitt, Mega Trends 2000. Our
society is stressed out and salons are convenient retreats. A relaxing environment, with customer
service providing preventative services and products at a good price is key to salon success in the
new century. Many women enjoy a relaxing facial for skin maintenance benefits, however, with
consumers in today’s economic climate are searching for. Marketing is key. Know the clients,
their habits, likes, and dislikes. To do this, the salon must be automated.
As a part of most cities in America, hair salons play an integral role of the economic
fabric of our nation. Salons provide both employment and tax revenues and contribute
substantially to the economic vitality and social well-being of a community. As the recession
continues to cut deeper into everyday necessities, the salon industry, while often resilient in
times of economic uncertainty, is now feeling the downward pressures of changes in the
economy. “Member salons are reporting various trends developing as their clients make changes
in their spending habits, however many consumers continue to view their professional hairstylist
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The Aquino Group:
Business Plan: Regis Hair Salons
Prepared by: Scott Aquino, December 2009
and the services they provide as a necessity that they do not want to forgo,” said Marissa
Porcaro, marketing and communications manager for the Professional Beauty Association.
To adapt to consumers’ changing spending habits, salons are adjusting to meet the needs of their
clients. “PBA is seeing a greater demand for the services we offer our salon members on
everything from business management and marketing assistance to mentor programs and a
multitude of educational classes. These classes are designed to help salons get through this
period and ideally emerge stronger in the future,” Porcaro said. Trends salons are
Businesses such as the local restaurant, market or salon that provide products and services are
essential to the dayto-day lives of Americans. At approximately $56 billion in sales for 2008, the
overall beauty industry in North America is a significant part of our economy. As the economy
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The Aquino Group:
Business Plan: Regis Hair Salons
Prepared by: Scott Aquino, December 2009
continues to waver, it is the education, training, and personal relationships of professional stylists
that help ensure clients continue to return time and time again.
Finance
The Finance Plan is under review. It will be available once it is determined what the total
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