Collegiate Cuts

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

Section I. Executive Summary

Collegiate Cuts is a barbershop that will be located at Nichols College to begin

and eventually to campuses nationwide. If not permitted to be on campuses,

Collegiate Cuts will be located a reasonable distance away from campuses. The

goal of Collegiate Cuts is to become a comfortable place for young adults. We

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

colleges nationwide. By locating ourselves either directly on campuses or within a

short distance, we will gain a competitive advantage in the market because we will

be extremely accessible. Collegiate Cuts is a partnership that will be managed by

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

to be a comfortable environment for both the employees and customers.

Section II. Mission, Vision, and Culture

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

priority. If this business cannot be placed directly on campus at a prospective

college it will be located within reasonable distance. Collegiate Cuts wants to

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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

reliable transportation or any form of transportation at all. It will be convenient

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,

laugh, etc. with other people while getting an amazing haircut.

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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

we will be closer to customers as opposed to other barbershops in the town of the

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

and schedule an appointment or just check when there are pre-scheduled

appointments. This organizations legal structure will be a partnership. I would like

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.

Also they will know what type of marketing works best.

Section IV. Opportunity Analysis and Research

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

of the college student discount.

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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

most often so the environment will be made to accommodate to our primary

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

time with your friends while getting a haircut.

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

Company, G Force Barbershop, Freddy Manzis Barber Shop, and Websters

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.

Section V. Marketing Strategy & Plan

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 I plan to market Collegiate Cuts

through the radio, newspapers, flyers, and

through surrounding schools. I just need a

very small percent of the market in order

to be marketable because the Nichols

college students are going to go and I

only need about 10% of the Nichols

College population.

Products/Services

I intend to market my barbering business by focusing on the advantage we have

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

business we will meet about every other barbershop in the area.

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

answer the phone for the business.

Section VI. Management & Operations

Management Team

The owners will be a partnership between me and another barbershop owner.

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

median home price is about $236,900.

http://www.bestplaces.net/city/massachusetts/dudley

Facilities

The building size that will be needed is about medium size, just enough for one

barber but enough space to expand.

Equipment

Barbering chair
Shears
Cash register
At least a 40 Flat screen
Xbox One game console
Barbering tools
Street sign
Etc.

Section VII. Financial Analysis and Projections

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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

NetIncome (Loss) ($17,139.56) $20,376.60 $32,361.80 $59,582.00 $98,880.00 $194,060.84

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

CashRequirements(Excess) $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.

Section VIII. Funding Request and Exit Strategy

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

business to my partner possibly to my children so they can keep it going with my

values. If I get offered a price I cant turn down because of the price I may sell my

share to someone else.

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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

Sabis International Charter School, May 2014

High School Diploma, College Prep

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

LEADERSHIP & DEVELOPMENT

Sabis International Charter School Varsity Basketball Team, Manager 2013 - 2014
Christian Debutantes & Gentlemans Cotillion, Participant 11/2013 5/2014
- Demonstrated achievement & interest in community service
- Development & reinforcement of appropriate social skills
- Workshops & Seminars include Effective Communication, Interviewing &
Presentations
GBMCAA Young Mens Leadership Conference Boston, MA 3/2014
- Empower young men of color to make healthy & informed decisions
- Equip young men of color to recognize and develop their leadership skills

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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