Professional Documents
Culture Documents
Darius Cofer
11/30/16
Entrepreneurial Management
Professor Conrad
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Table of Contents
I. Executive Summary.Pg.3
II. Mission, Vision, and
Culture....4
III. Company Description..5
IV. Opportunity Analysis and Research.6
V. Marketing Strategy and Plan.9
VI.Management and Operations........12
VII. Financial Analysis and Projections..13
VIII. Funding Request and Exit Strategy....15
IX.Appendices16
Collegiate Cuts will be located a reasonable distance away from campuses. The
want to make sure people look good, feel good and do well while at college all at a
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reasonable price. We want to build a good reputation to be able to expand to
short distance, we will gain a competitive advantage in the market because we will
Darius Cofer. He has a love for haircuts and the connection with being successful.
He often gives college students around him haircuts for prices significantly cheaper
than barbershops and will even come to where you live! Collegiate Cuts will strive
Collegiate Cuts promises to provide high quality haircuts at a lower cost than
our competitors, not only for college students but also for all customers. Collegiate
Cuts will focus on targeting college campuses, with Nichols College being its first
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create an environment that attracts young adults. This will be done by the exterior
and interior design and also the price will be the most appealing to customers. Our
vision is to one day expand to multiple campuses and also other urban areas.
Another part of the vision is to expand beyond strictly a barbershop and include a
hair salon as well. Collegiate cuts is a big supporter to kids going to college which
is why we offer discounts to students with a valid college I.D. We are also aware of
the strain college puts on people financially and the issue of everyone not having
because students will be able to go right before a big interview and/or class
presentation. A barbershop is not only to cut hair but a social gathering ground for
people. It is a happy environment where you can listen to music, talk about sports,
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Section III. Company Description
Collegiate Cuts is a service in the hair care services industry. This business will
fulfill the need of haircuts to people mainly on college campuses. But we will not
make our target strict, as anyone can be a customer. Our strategic advantage is that
school. Also we will have a better price due to the fact we give discounts to college
students with a valid college I.D. Also with the ability to call or go on our website
to partner with a current barbershop owner and/or with a college. Partnering with a
successful barbershop owner he/she would give more insight to what is best for the
business since he has experience. Also he can get workers with his connections.
Industry analysis
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The target customer is anyone in Dudley, Ma. It will mainly be males that go to
the barbershop. Dudleys population is about 11,587 and about 1,200 students
attend Nichols College. I did a small survey and everyone usually said they get
their haircut 2-3 times a month or more. They also said they pay between $15-20$
for a haircut at their current barber including if they choose to tip. Most college
student do not want to spend that much money on a haircut. Most people I
surveyed said anything $15 or lower are great for them. Extra cost will apply like if
a customer wants his beard trimmed, a design in his hair, or his eyebrows cleaned
up. No matter what you get it will be cheaper than many other barbershops because
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http://www.usnews.com/news/blogs/data-mine/2014/02/28/what-america-pays-for-
a-haircut
As you can see above on the chart the average price for a haircut in the
northeast region is $37 dollars while our average will never reach near there. Our
projected average will be around $14 our first year of startup. We are expecting
more of our business during the school year since we will be focusing our
placement near college campuses. One of the main factors that increase our
demand is the price being significantly lower than other barbershops and the
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location. Another advantage is the environment, the ages 16-29 get haircuts the
customers. We will have a flat screen TV that will have sports, music, movies, etc.
we also will have a game system that can be played by customers waiting. The
games included will be NHL, NBA2K, and Madden. Collegiate Cuts with have a
relaxed environment where you can hangout, watch the game, and have a good
Environmental Analysis
SWOT Analysis
Strengths
Price
Location
Demand for service
Environment
Network
Weaknesses
Start-up cost
Consistent customer base
Finding employees
Opportunities
Can expand to other locations
Be paid to be on college campuses
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Threats
Competition from local barbershops
Competitive Analysis
There are four other barbershops in Dudley, MA. These are London Barber
Choice. I plan on being closer to the campus than all of these. Ive visited these
barbershops and London Barber Company is the closest but also the most
expensive of the four. Being a student at Nichols College I hear a lot of feedback
from students and there are a lot of complaints about the price and quality of the
haircuts. A lot of people like Websters Choice but it is also the farthest at 2.6 mi
away.
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I plan to market Collegiate Cuts
College population.
Products/Services
on the cost. We give discounts to customers with a college I.D and we want to
market that the most. The name Collegiate Cuts will be copyright so the name
cannot be taken by anyone else. This barbershop will also be a fun environment for
the community and students. From experience barbershops bring people together.
Pricing
We will use a meet-or-beat pricing strategy. The first year of opening is the only
projected period we expect a loss in profits. We will cost less than any other
barbershop our first couple years as we are building a customer base. This on top
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of the College I.D discount will attract more and more people. Were third year in
Promotion
The service will be promoted on the Nichols College radio and flyers in the
area. I wont be difficult to get students to go since I have connections with them
being a student, soon to be alumni. The day of the Grand Opening there will be a
big sign so it will be known that it is a new barbershop. I will interview all barbers
that are willing to work so I can get a feel for their personality and also I will need
to see some of their work. I will possibly hire 2 or 3 barbers but only 1 will be
working at a time. This will force them to get a relationship with their customers so
they can make appointments and come in when the customer knows they will be
there. Also it gives customers options for different types of barbers and gives them
the opportunity to find the barber they prefer the most. We may also have work-
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study for students of the college to work the front desk and book appointments and
Management Team
There will be one barber for the first 2 years so we can build a customer base then
the third year we will incorporate another barber in another location or at the
previous location if customers exceed what we project. Then year 4 we will have a
total of 4 barbers, two at each location. My partner and me will get a salary. The
first year it will be low but the barbers will be just below average for what barbers
usually make but after a few years they will be above the average for barbers. We
will grow every year and so will our compensation. Year 5 we will be making a
$50,000 salary. Barbers will pay a fee to rent out the chair as well so that will add
to profits.
Physical Location
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The cost of living in Dudley is rather high compared to other locations. The
http://www.bestplaces.net/city/massachusetts/dudley
Facilities
The building size that will be needed is about medium size, just enough for one
Equipment
Barbering chair
Shears
Cash register
At least a 40 Flat screen
Xbox One game console
Barbering tools
Street sign
Etc.
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Income Year1 Year2 Year3 Year4 Year5 5YearTotal
GrossSales:
CustomersPerDay 17 30 49 85 100
DaysofOperationperWeek 6 6 6 6 6
Weeksof OperationperYear 52 52 52 52 52
TotalCustomersAnnually 5,304 9,360 15,288 26,520 31,200
AverageSaleperCustomer $14.00 $14.00 $15.00 $15.00 $15.00
TotalGrossSales $74,256.00 $131,040.00 $229,320.00 $397,800.00 $468,000.00 $1,300,416.00
Expenses
Advertising $4,000.00 $3,000.00 $3,000.00 $3,000.00 $1,000.00 $14,000.00
Materials&Supplies $6,000.00 $1,000.00 $2,000.00 $1,100.00 $1,000.00 $11,100.00
Licenses, Fees&Permits $5,000.00 $800.00 $5,000.00 $800.00 $800.00 $12,400.00
Insurance(1%of GrossSales) $742.56 $1,310.40 $2,293.20 $3,978.00 $4,680.00 $13,004.16
OfficeExpenses $1,000.00 $500.00 $1,000.00 $2,000.00 $1,000.00 $5,500.00
Rent $2,058.00 $2,058.00 $8,000.00 $8,000.00 $8,000.00 $28,116.00
Cleaning,Maintenance&Utilities $3,000.00 $3,000.00 $2,000.00 $2,000.00 $2,000.00 $12,000.00
SubcontractorsandConsultants $5,000.00 $5,000.00 $5,000.00 $5,000.00 $5,000.00 $25,000.00
Legal&Accounting $2,000.00 $2,000.00 $5,500.00 $3,000.00 $2,000.00 $14,500.00
Salaries:
Officers-
Count 2 2 2 2 2
AverageAnnualSalary $13,500.00 $25,000.00 $25,000.00 $40,000.00 $50,000.00
TotalOfficersSalaries $27,000.00 $50,000.00 $50,000.00 $80,000.00 $100,000.00 $307,000.00
Administrative-
Count 0 0 1 2 2
AverageAnnualSalary $0.00 $0.00 $29,000.00 $30,000.00 $32,000.00
TotalAdministrativeSalaries $0.00 $0.00 $29,000.00 $60,000.00 $64,000.00 $153,000.00
Staff -
Count 1 1 2 4 4
AverageAnnualSalary $24,000.00 $25,000.00 $27,000.00 $28,000.00 $29,000.00
TotalStaff Salaries $24,000.00 $25,000.00 $54,000.00 $112,000.00 $116,000.00 $331,000.00
EmployeeBenefits(@15%ofPayroll) $7,650.00 $11,250.00 $19,950.00 $37,800.00 $42,000.00 $118,650.00
PayrollTax(@7.5%of Payroll) $3,825.00 $5,625.00 $9,975.00 $18,900.00 $21,000.00 $59,325.00
CapitalExpenditures:
Land $0.00 $0.00 $0.00 $0.00 $0.00
Buildings(30yearlife) $0.00 $0.00 $0.00 $0.00 $0.00
Depreciation- Building $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Machines&Equipment(10yearlife) $1,200.00 $0.00 $1,200.00 $4,000.00 $0.00
Depreciation- Machines&Equipment $120.00 $120.00 $240.00 $640.00 $640.00 $1,760.00
TotalExpenses $91,395.56 $110,663.40 $196,958.20 $338,218.00 $369,120.00 $1,106,355.16
CashFlow
NetIncome ($17,139.56) $20,376.60 $32,361.80 $59,582.00 $98,880.00 $194,060.84
Depreciation $120.00 $120.00 $240.00 $640.00 $640.00 $1,760.00
NetCashfromOperations ($17,019.56) $20,496.60 $32,601.80 $60,222.00 $99,520.00 $195,820.84
CapitalExpenditures ($1,200.00) $0.00 ($1,200.00) ($4,000.00) $0.00 ($6,400.00)
NetCashFlow ($18,219.56) $20,496.60 $31,401.80 $56,222.00 $99,520.00 $189,420.84
We will lose money our first year, the first couple year we may struggle but if
the staff works hard and our marketing is working we will make a lot of profit. Our
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main focus is earning the best reputation for barbering and having the best
environment.
Funds Requested
I am asking for $100,000 loan in order to pay my staff and further my business
after the first year. This will be used for the equipment, rent, and other expenses.
Exit Strategy
I hope to have this business for a lifetime possibly. If not I will sell the whole
values. If I get offered a price I cant turn down because of the price I may sell my
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Section XI. Appendices
Resume:
Darius M. Cofer
85 Undine Circle
Springfield, MA 01109
Dmcofer@nichols.edu
(413) 896-9077 (c)
EDUCATION
Nichols College, Dudley MA
Major: Marketing
Degree: Bachelor of Science in Business Administration
Graduation Date: May 2018
WORK EXPERIENCE
Recreation Lead City of Springfield, Summer 2014
Supervise and guide youth activities
Serve as a Mentor to participants in need
Participate in team-building activities
Utilized brainstorming skills to create program engagement
Stats Manager- Basketbull, May 2014 - Present
Record the stats of the games for the day in a timely manner
For each team and every individual player
Warehouse Employee- Vistar Warehouse, May 2016 June 2016
Picking 86,105, and 128 piece orders and placing them on pallets in a given time
Work on the conveyor belt as in packaging and placing the items on the pallet
Warehouse sanitation.
Electrical Engineering Intern- (RICHCO) MassMutual Financial Group, July 2016
August 2016
Answered to work orders for MassMutual
Helped change light bulbs and ballasts that were inactive
VOLUNTEER WORK & COMMUNITY SERVICE
Bison Give Back, Nichols College 2014
Red Cross Volunteer and Blood Drive Ambassador, 2014 - 2015
New Life Calvary Baptist Church, Sound Technician, 2012 - Present
Keep Springfield Beautiful, 2012
New Life Calvary Baptist Church, Youth Group Assistant, 2011 Present
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New Life Calvary Baptist Church, Junior Missionary Outreach Ministry, 2010-2012
Homeless Shelter Food Kitchen, 2010-2013
EXTRACURRICULAR ACTIVITIES
Intramural Basketball and Flag Football, Nichols College 2014-Present
Caribbean Club, Nichols College 2015-Present
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Works Cited
http://forums.menshealth.com/topic/63643898168213955
http://www.bestplaces.net/city/massachusetts/dudley
https://www.google.com/maps
http://smallbusiness.chron.com/make-money-running-barbershop-22514.html
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