Skilled Klipz
Barbershop
Michael Andrade & Eric Bueno
11th Grade
Age 16
Business Profile

Our business is a barbershop, the reason why we have selected this
as our business idea is because we feel that our service would
satisfy the customers more than anyone else's. We know that many
people are looking for a barbershop with great services and
hospitability.

Type of Business :



Our business is a service.
We will satisfy a customers need by giving them a good service
at an affordable price.
Legal Structure :


Partnership
Our skills and contacts are expanded, and also we can pool
resources and get more work done.
1
Opportunity

Define opportunity




Gives a customers the satisfaction of having their hair
looking great.
We get to the point and make it quick.
We provide refreshments for customers to purchase.
Qualifications



We will get our barber licenses by 2011.
We know how to cut hair.
We know customers and contacts that are barbers.
2
Consumer Profile





By Location
 South end of Hartford
By Population
 4+
By Personality
 Clean and presentable people.
By Behavior
 Loyal customers if good service
By Income
Everyone would get a haircut no
matter what circumstances.
Photo of a
consumer
3
Competition
Greatest
Strength
Greatest
Weakness
Competitor
Price
Quality
New Cuts
Masterpiece
Skilled Klipz
$12.00
good
Speed
Quality
$15.00
good
good
Speed
Quality
Quality
Speed
$10.00
Competitive Advantage
• Better quality and a good persistant speed.
4
Marketing Mix

Price:


Place:


Convenient location, many customers
Product:


Its affordable, brings competition, and makes profit.
Makes people look presentable, and clean for any
occasion.
Promotion:

We will use grand opening sign and word of mouth
5
Marketing Plan
Phase
Method
Awareness
Grand opening
banner and word
of mouth.
Purchase
Good quality.
Retention
Good service.
Description
In front of
business one
month before
opening.
Good quality to
satisfy customers.
Good service
would keep the
customers loyal.
Cost
$58.00
$
0
$
0
6
Cost of Materials/Direct Labor
Definition of One Unit
1 Haircut
Cost of Sales Per Unit
Direct Labor
(Labor Cost per Hour)
$
Time (in hours) to make 1
unit
7.65
Material Description
Direct Labor Cost Per
Unit
30 min. or .5 $
2.52
Total Direct Labor Per Unit $
2.52
Cost/Total Quantity
Cost Per Unit ($)
razors
$2.50/ 10
.25
gel
$1.50/ jar
.10
Total Material Cost Per Unit $
.35
Variable Costs Per Unit
$
0
Cost of Sales Per Unit
$
2.87
8
Economics of 1 Unit
Definition of One Unit
Selling Price per Unit
Direct Labor Per Unit
Materials Per Unit
Total COGS Per Unit
Variable Costs Per Unit
(outgoing shipping, packaging,
commissions)
Total Cost of Sales
Gross Profit Per Unit
Haircut
$ 10.00
$ 2.52
$ .35
$ 2.87
$
0
$ 2.87
$ 7.13
9
Time Management Plan
Business Schedule for a
Typical Week
Entrepreneurship
42
Business Schedule for a
Typical Week
Entrepreneurship
42
School Hours
37
School Hours
37
Work Hours
(ex.part time job)
0
Work Hours
(ex.part time job)
0
Sleep
43
Sleep
45
Free-Time Hours
46
Free-Time Hours
44
10
Average Monthly Fixed Costs
Type of Fixed Cost
Monthly Cost
Entrepreneurial Stipend
$20.00
[ hours x (minimum wage + $1]
Utilities
$75.00
salaries of employees
$300.00
insurance
$25.00
rent
$730.00
depreciation
$4.44
Total Monthly Fixed Costs
$1154.44
11
Monthly Sales
Projections
Units sold
700
Month
Units Sold
January
500
February
376
March
416
April
460
May
530
June
552
July
560
August
572
September
544
October
540
November
500
December
572
600
500
400
300
200
100
0
Jan
Feb Mar Apr May June July Aug Sept
Monthly BreakEven Units Monthly
Oct
Nov
Dec
163 hair
cuts
Fixed Costs/Gross Profit Per Unit
Total =6122
13
Projected Yearly Income
Statement
Selling Price Per Unit
$
# of Units Sold
Total Sales
10.00
6122
$61,220.00
Total COGS
$21,014.14
Other Variable Costs
$
0
Total Variable Costs
$21,014.14
Gross Profit
$40,205.86
USAIIRD
$13,853.28
Other Costs/Unforeseen
$
7,000
Total Fixed Costs
$19,973.28
Profit before Taxes
$20,232.58
Less Estimated Taxes @25%
$ 5,058.15
Net Profit
$ 15,174.43
14
Start-up Investment
Entrepreneurial hours
needed for start-up
Wage I pay myself
17hrs
$7.65
Item
Where I will buy this?
Startup cost for
barbershop
Sally beauty supplies
CASH RESERVE covering 3 months of fixed
costs
Business Cards & Sign
Estimated TOTAL START-UP INVESTMENT
Total start-up
time investment
$130.05
Cost of Item
$2200.00
$3493.32
$250.00
$6073.37
15
Return On Investment
Return on Investment (ROI)
250%
For every $1 dollar invested,
my business earned :
$2.50
16
Social Responsibility Plan
 Donate
100% of our sales to the American
Cancer Society for one day. ($600.00 or
more)
 Huge banner in the entrance a month in
advance and spread it through word of
mouth. Ask other barbers to join for a good
cause just for a day.
17
Business & Educational Goals
 Business
-Double our customers by
the end of the first year.
- Open other locations
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.
18
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