In order to understand what it takes to successfully write a comprehensive business plan, I will be reviewing one. My chosen career industry is the salon and spa industry, and will be reviewing a business plan for Epiphany Salon. I will then decide if this company is worth me investing $5,000 into it or not.
Epiphany Salon is themed as an “urban, industrial, techno, chic” corporation, desiring to be a hip service and product center and also an educational center for cosmetology located in downtown Green Bay, Wisconsin (“Hair Salon Business Plan Business Plan – Vision/mission, Product strategy, Market analysis, Financials”, 2018). Since 1997, Epiphany is considered to be in the start-up stage and has established three departments internally: Epiphany the Salon, Epiphany Male Room, and Epiphany Educational Center.
Epiphany focuses on a fill service salon, retail center, and educational center. They have acknowledged their challenges within the salon industry as recruitment, retention, and productivity. However, the president, Barbara, and vice president, Rhonda, have owned and operated successful businesses in the past and have created a vision and mission for the salon, as well as goals and objectives for success (See appendix A).
Alongside Barbara and Rhonda, they plan to incorporate company directors to help with education and retail sales. The main focus for Epiphany is to grow professional cosmetologists in order to recreate the image of cosmetology by teaching strong technical and communication skills, and strong sales. Aside from these training focuses, they strongly believe that cosmetologists need to be trained in personal financial management and estate planning to establish long-term commitment. This vision for Epiphany is important for the image and growth of cosmetologists, and will also attract great cosmetologists in the area as well.
Being a salon owner myself, I think it is important they have established multiple roles at the company. I believe their mission, vision, and commandments are very focused and appropriate, and if they are followed and enforced, they will ensure success.
Products and Services
Bettiva is the product of choice for Epiphany the Salon and Epiphany Education Center. Although this product brand is well known in Wisconsin, Epiphany sees this as an opportunity and not a threat due to them having the largest inventory amount versus other salons. This will be the only product line offered, keeping Epiphany exclusive and allow for easier inventory control.
Epiphany Salon will be a full-service salon, offering a variety of different salon services in order to attract multiple different clienteles (See appendix B for full list of services). The Education Center is also addressed, by acknowledging the required hours and training needed for proper licensing of cosmetologists, nail technicians, and estheticians.
My salon is also an exclusive salon by having only one brand behind us, Aveda. This is a great business model as it allows for client loyalty and establishes longevity with a brand. Epiphany definitely takes it to the next level by creating Epiphany Education Center for many reasons. They will not be at the mercy of having to hire service providers trained by other schools and with other brands. They will be in control of grooming new students and training them the way they would want them to be in their salon, creating a great environment and educational experience. They will also be the desired salon for students to want to work for after they become licensed.
Epiphany’s marketing plan is somewhat vague due to it being in the development stages, but is focused on growing the business by 10% annually. Luckily, they have budgeted 3% of the total revenue to marketing and have created a 12-month promotional grid for direction and consistency. Right now the logo is being created and will be copied immediately, and they are beginning the designing phase for the storefront.
In order to create awareness upon opening, Epiphany will send out press releases for an open house. They have established a direct marketing plan for the new services offered and their new product menus, and will promote education recruitment quarterly. Aside from these initial promotions, they have established measurable results for marketing:
• Increased sales
• Increased market share
• Improved image
• Increased knowledge of business
• Identified competitive advantage
• Created improved climate for future sales
Although they have established their desired growth expectancy for Epiphany based on marketing, they have not recognized the exact marketing options in order to make this happen. This raises some concern as to exactly how they plan on increasing all of these areas; through social media? Printed ads? Word-of-mouth? Referral programs?
Management and Organization
The two executive officers, Barbara and Rhonda, have both established their personal responsibilities, as well as others inside the organization. As the President, Barbara will be overseeing most of the salon, retail, and male room operations:
• Retail center. Oversee the operations of the retail area. This includes inventory, stocking, and displays.
• Oversee receptionist duties and scheduling.
• Oversee the Male Room operations.
• Participate with salon managers. Managers should report to Barbara for needs.
• Handle payroll operations.
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