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Three-Year Business Plan
2004-2006
Executive Summary of
Haircare Accents
Haircare Accents:
Beauty Salons can increase revenue
by over 100% simply by retailing products in their salon, yet only 10% of
salons retail fashion jewelry and accessories.
Wouldn’t it be great if salons could go to one company to get the
products, display systems, and educational courses needed to become an
effective retailer of fashion jewelry and accessories? Haircare Accents makes this idea a
reality. We wholesale fashion jewelry
and accessories to beauty salons, as well as provide them with the display
systems and educational services needed to transform their salon into a full
service fashion entity. Most hairdressers see themselves as simply hair
cutters, while their clients view them as the style experts. By educating stylists on their role as a
style advisor, hairdressers can easily add fashion jewelry and accessory
retailing to their salon services, and as a result increase monthly revenue by
astounding amounts.
Purpose Statement:
“Haircare Accents is a hip, fresh wholesaler of affordable fashion
jewelry and accessories to beauty salons.
Because we are in tune with the pulse of the fashion industry, we
provide our accounts with the latest and most popular merchandise. We aim to be the regional leader by providing
great products at the right prices. Our goal is moderate growth and annual
profitability, by bring beautiful accessories to the Pacific
Northwest .”
Products and Services:
Haircare Accents is the only wholesaler of fashion jewelry and
accessories that service salons with a three-pronged system of providing the
products, display systems and educational courses needed to be an effective
retailer. We also provide that latest and most up to date fashion accessories
at very affordable prices.
Marketing and Sales Strategy:
Haircare Accents differentiates itself from other wholesalers by
focuses on wholesaling to beauty salons and catering to their specific
needs. We offer multi-channel service by
way of trade shows, a website, in-salon showings, a Seattle
Competition:
There are many wholesalers of fashion jewelry and accessories in United States
Financials:
Haircare Accents has been increasing revenue by over 30% for in
each of the past four years without even adding more sales associates. By adding sales associates to better serve
new and existing clients, Haircare Accents expects to increase Sales Revenue to
$466,210 in 2004, $1,504,550 in 2005, and $3,645,500 in 2006 with net profits
rising to $27,848 in 2004, $291,277 in 2005, and $930,362 in 2006.
(See Appendix)
Purpose Statement
“Haircare Accents is a hip, fresh wholesaler of affordable fashion
jewelry and accessories to beauty salons.
Because we are in tune with the pulse of the fashion industry, we
provide our accounts with the latest and most popular merchandise. We aim to be the regional leader by providing
great products at the right prices. Our goal is moderate growth and annual profitability,
by bring beautiful accessories to the Pacific Northwest .”
Goals
The goals of Haircare Accents:
-To become the regional leader of fashion jewelry and accessories.
-To expand our client base throughout the Western
United States .
-To provide excellent customer service.
-To differentiate Haircare Accents through our three-pronged
delivery system of merchandise,
display systems, and educational services to salons.
Business Description
Haircare Accents is a Washington
based company that provides Salons with fashion jewelry and accessories,
display systems, and educational services throughout the Western
United States . Haircare Accents is the only Pacific Northwest
Wholesaler that focuses on providing salons with the merchandise, display
systems, and educational services needed to increase their profits, add
customer service, and add beauty to their salon through fashion accessory
retailing. We do this by offering a wide variety of the latest fashion jewelry,
hair accessories, purses, sunglasses and more to be sold in salons. We also offer a full line of racks, displays,
and supplies needed to display and sell the products. Additionally, we provide salons with
educational classes on a variety of topics including: how to use hair
accessories in up-do’s, how to effectively display merchandise, and the art of
successful retailing. This three-pronged
system is what makes Haircare Accents so effective. Salons come to us to buy accessories; they
stay with us because we help them increase their sales of the accessories by
offering display systems and educational services.
Business History
Haircare Accents was started in 1982 by Arthur and Alice Andrews
in Laramie , Wyoming Alice
began to call on hundreds of accounts throughout Wyoming Eastern Washington
State territory of Eastern Washington , Idaho ,
and Wyoming Seattle and Portland Seattle
Haircare Accents
now has thousands of accounts in a twelve state area serviced by four full time
and one part time employee. They have
show contracts with Pacific Beauty, International Salon Expos, Hair Mechanics
Warehouse, Washington Association of Cosmetology, Oregon Association of
Cosmetology, Las Vegan Hair and Nail Expo, and more. They attend over fifteen beauty salon trade
shows a year, with gross sales averaging around $8,000 per show. We hold our
own educational/buying shows in Spokane , WA and Wyoming
The employees of Haircare Accents have a combined fifty-one years
experience in the hairdressing industry, yet we are constantly learning and
growing to fit the needs of our salons.
We are well positioned to take advantage of the many opportunities in
this $50 billion plus annual U.S.
Services
Fashion Products:
Haircare Accents
serves salons through a three-pronged system.
We provide our clients with fashion jewelry and hair accessories that
are both retailed in the salons as well as used in hair styling.
In order to
provide our clients with the latest fashion jewelry and accessories, we
dedicate much of our time to studying national and international fashion
trends. By attending fashion shows in Los Angeles and Las
Vegas
Display Systems:
Over the years, we've
learned that salon with stylish displays sell far more accessories than those
who do not. That is why we want all of
our salons to use displays for their accessory retailing. In order to provide
our salons with inexpensive, yet stylish racks and displays, we buy them in
bulk from a manufacturer, and sell them at a low margin. This allows clients to increase the quality
of their display at an affordable price.
As a result, our clients sell more accessories, and re-order more. It creates a win-win relationship.
Educational Services:
Throughout the years, we have also learned that hairdressers love
to learn. Hair styling, just like the
fashion industry, is an ever-changing world, and in order to keep up with it,
one must learn the newest trends. In the
past, we used to just have cash and carry merchandise shows. While admission
was free, attendance at these shows was very low. We added educational courses to our shows,
teaching hairdressers about the up-coming fashion trends as well as how to use
our hair accessories to create new styles on their clients. Even though we charged admission for the
educational show, our attendance was by far greater due to the perceived value
of the new shows. They loved to learn
how to use our products and about the hottest new trends. Now we do educational shows annually in Spokane , WA and Wyoming , and will kick off our first Seattle
Industry Analysis
Salon Retailing and
Services on the Rise:
In 1996, the U.S.
Competitive Environment:
There are many wholesalers of fashion jewelry and accessories in United States Pacific
Northwest , and the only wholesaler that provides educational
services. We have also expanded to sell
in Utah , Nevada ,
Arizona , California ,
and Texas Chicago
Barriers to Entry:
The costs related to entry into our industry are actually
relatively low, just investment into the inventory, but there are numerous
other barriers. The main barrier is
being able to find clients. Hair
dressers typically do not like to be approached while working, but instead
prefer to conduct buying business on their off time. This would make it difficult for someone who
does not already have connections to the industry to find new clients. The best way to meet new clients is by
attending hairdresser trade shows. At these shows, we can meet thousands of
hairdressers in just a few days. In fact the Las Vegas Hair and Nail Expo draws
over 30,000 hairdressers. We have special contracts to do these trade shows,
because we have relationships with the distributors and they gave us contracts
to do their shows. It would be very
difficult for someone outside the industry to gain these contracts.
Another barrier to entry is being able to understand the hair
dressing industry. It has taken us many
years to get an understanding of the way the salons operate. For example, some salons are leased stations
salons, where each stylist has their own space in the salon, as well as their
own retailing racks, where as in a commission salon, the owner owns all of the
retail merchandise and the stylists are paid commissions on what they
sell. Selling to these different types
of salons are completely different, and this is something an outsider would not
readily understand. It has also taken us
years to understand how to buy for salons.
There are three main styles of salons: Hip and Trendy (Fashion Forward
Salons, usually younger clientele), Family (Parents and Kids), and Golden Oldie
Salons (Seniors who make weekly trips to get a shampoo set)(see salon category
table on page***). Each style caters to a different market, and retails
different merchandise.
Another barrier is finding good vendors and merchandise. Over the years we have learned what type of
merchandise works best for each style.
Now our clients trust our advice on what would work best in their salon. This is now something that can be quickly
learned by outsiders. We have also found
vendors that we can trust and rely on, something that took us many years to
establish.
Long Term Opportunities:
The long-term outlook for our industry is very good. While specific fashions and trends may go out
of style, the fashion industry is here to stay.
Additionally, there is a beauty salon in every small town in the entire United States
The top 20 percent most successful and profitable salons in the U.S.
Marketing Plan:
Haircare Accents distinguishes itself from its competitors by
focusing on providing salons a way to increase their profits, add beauty to
their salon, and become better hairdressers as well as business people. We have many years experience in the Beauty
Salon Industry and understand the needs of hairstylists.
Haircare Accents Meets
Customer Needs:
We understand that hairdressers are different than store
retailers. As "hair artists",
stylists like to finds new ways to incorporate hair accessories into their
styles. They don't just sell trinkets,
they are style and fashion advisers to their clients, and deserve to be treated
as such. This is why we don't just sell
merchandise. We offer a three-pronged
system of service that provides hairdressers with all the merchandise, materials,
and skills needed to become the ultimate hairstylist/fashion advisor.
Hairdressers want to deal with a wholesaler that not only
understands the fashion industry, but the beauty salon industry as well. This is what Haircare Accents provides.
Culture of Education:
Haircare Accents has a culture focused on education. We understand that hairdressers are the
experts in the beauty industry. They
advise their clients on what hair styles/colors are flattering on them, and
deliver these looks. This develops a
relationship of trust between the stylist and their clients. We educate hairstylists on how to take this
relationship to the next level. We teach
them how to not only style a person's hair, but their entire look. This means what fashion jewelry and
accessories are flattering as well. They
can help their own clients find the hottest and freshest merchandise. By offering this full beauty/fashion service,
the hairdresser will be providing more customer service in their salon as well
as by earning more profits.
This system is delivered through educational classes and advising
provided by Haircare Accents. We teach
hair stylists how to use our products, but also what the stylish trends are,
how to display and sell the merchandise, and how to be effective advisors to
their clients. Many wholesalers avoid
selling to hairstylists claiming their artistic nature makes them
"bad" business people. We
choose to see that as artists, hairstylists have client who trust their advice,
and that puts them in a wonderful business position, they just need a
wholesaler who provides the educational services to steer them in the right
direction. We help hairdressers become
better business people.
Hair/Trade Shows:
Hair/Trade shows are key to Haircare Accents marketing plan. It is the fastest, easiest, and least
expensive way to meet new clients. We
have show contracts with Pacific Beauty, International Salon Expos, Hair
Mechanics warehouse, Washington Association of Cosmetology, Oregon Association
of Cosmetology, Las Vegan Hair and Nail Expo, and more. We attend over fifteen hair trade shows a
year, with gross sales averaging around $X,000 per show. One show in specific,
the San Jose West Coast Show, has an attendance of over 20,000
hairdressers. In 2003, we grossed over $X,000
in one day at this show, and expect more sales this year. We have our own educational/buying shows in Spokane , WA and Wyoming Seattle
Online Catalog:
Our online catalog www.Haircare.ibuilder.com, is a wholesale only
website that offers pictures of our merchandise for our accounts to order. It is our best way to serve our clients that
we cannot regularly meet in person with. They can look at all of our merchandise and
order off the website or they can make the order by phone.
In January 2004, Haircare Accents open a Seattle Cash and Carry
showroom in the Northern Passage Building
in Seattle Pacific
Northwest clients can come to in person to see our merchandise and
get advice. In the showroom, they get
one on one attention to learn about our products and how to use/sell them. This has been very well received, and more
and more clients begin to use the showroom. Stacey Williams, our head of
Marketing, runs the Seattle Showroom.
She has one other full time employee, Josanna Herman. We plan to expand our showroom operations
this year by hiring an administrative assistant and two employees to process
and pack orders for shipping.
In-Salon Visits:
Many salons prefer that we visit them in salon by
appointment. Arthur and Alice Andrews
travel around Wyoming , Idaho ,
Oregon , and Eastern
Washington calling on our biggest accounts in person. We bring the merchandise to them in their
salon. This way they can view the
products in person and get advice from Arthur and Alice. We plan to expand our sales staff this year,
in order to have more sales associates out in the field selling to salons. They will work on a 10% commission basis.
Direct Mailing:
We also direct mail small flyers to salons in the Pacific Northwest showing our merchandise and
services. It lists our website and
showroom directions. We have had some
success recruiting new clients this way.
Branding:
Haircare Accents is in the process of creating a private-label
brand called Floralities for our merchandise.
The name Floralities is a play on Victorian charm as well as the essence
of a blooming flower. It is fresh and
hip, yet with classic beauty. The
Floralities brand is in the process of being trademarked. It will be found both on our merchandise and
the display systems. Floralities
accessories will only be sold in salons.
This will create brand recognition for our products that will draw
people into the salons. This will be
another advantage Haircare Accents gives its clients.
Sun river’s Position in The
Region:
We only moved into the Seattle/Portland market about four years
ago, and already we are the number two wholesaler of fashion jewelry and
accessories to salons in the Pacific Northwest . We are number one in Wyoming ,
Idaho , and Eastern
Washington . We have had steady growth over the years, and with our
new expansions of a Seattle
Market Description
Haircare Accents operates in the Western
United States . While the
majority of our clientele is in Washington , Oregon , Idaho , and Wyoming , we also have clients in California ,
Wyoming , Nevada ,
Utah , Arizona ,
Alaska and Texas
Target customers:
While we do have some boutiques and shops that we sell to,
the majority and focus of our clientele is beauty salons.
Beauty Salons can be broken into the following outline:
I. The Salon Industry
A. Barber Shops
B. Beauty Salons (focus on hair styling, retail on the side)
1. Leased Station Salons
a. where stylists rent
their station and may retail in their own station b. They are typically the lowest volume
retailers.
2. Commission Salons
a. Stylists are paid a
commission salary for their services.
They may or may not be paid commissions for retail products. Retail product
bought by owner.)
b. They are typically the highest volume retailers in a salon
format.
3. Chain Salons
a. where stylists are paid
an hourly wage. They may or may not be paid commissions for retail products
sold. (Retail products bought by owner.)
b. They are typically medium volume retailers.
C. Beauty Supply/Salon (focus on retail, hair styling on the
side.)
a. commission or wage paid
sales associates.
b. They are the highest
volume retailers in the industry.
D. Nail Salons
a. Come in the same format
as beauty salons.
b. Typically lower volume
retailers than beauty salons.
E. Tanning Salons
a. Usually with hourly wage
paid employees.
b. Good retailers of sunglasses, toe rings, and anklets.
F. Spas
a. Usually hourly wage paid
employees
b. Strong retailers of
higher end jewelry.
The Style of the Salons
I. Beauty Salons
A. Fashion Forward Salons
1. Typically in urban areas
and college towns.
2. Target Customers are
18-45 years old women.
3. Average Hair cut $30.00
and up
4. Salons Products of
choice: Bed Head, Aveda, and Sebastian
B. Family Salon
1. In small towns and
suburban areas
2. Target Customers are
families
3. Average Adult hair cut
$15.00 and up
4. Salon Product of choice: Paul Mitchell and Matrix
C. Golden Oldie Salon
1. Small towns, Suburban
areas, and Retirement Communities
2. Target Customers: 55 and
older women who get shampoo sets.
3. Average Hair cut: $15.00
and up
4.
Salon Product of Choice: Apple Pectin and Lamaur
Market Readiness:
We conducted a
survey of 376 hairdressers at a recent Portland Hair Show. This survey showed the following:
91% of our
clients still retail our merchandise78% will look at our new website
21% plan to visit our new showroom (this is low because the
showroom is 3 hrs from Portland
64% of people who
had not ever met us will now be selling our merchandise
52% of our new clients did not know about or how to find fashion
accessories to sell in their salons. 100% of hairdressers surveyed would be
interested in ways of improving their salon profits.
Strategic Opportunities:
Since there are thousands of salons in the Western United States
that do not know about or how to find fashion accessories to sell in their
salon, and virtually all hairdressers are interested in how to increase profits
in their salon, shows that there is huge market potential to increase our
number of clients. Currently we attract
new customers through trade shows, our website, and word of mouth, but we plan
to start advertising in hairdressing trade magazines as well.
Competition:
Indirect
Competitors of Haircare Accents can be seen as any entity that sells fashion
jewelry and accessories. This could be
Claires, Icings, and even Nordstrom.
This is why we make sure to keep our prices low enough that our salons
can retail our merchandise at prices competitive and many times lower than
these retailers.
Main Competition:
Direct Competitors for us are fashion jewelry wholesalers that
cater to salons. In the Western United States , our major competitor is Noble and
Wulf. They have been wholesaling fashion
jewelry out of Seattle Pacific Northwest .
Yet they do not focus specifically to salons. The majority of their business is to retail
stores.
Another competition in the Western U.S.
is Chars of Laguna. Char's sells high
end Austrian Crystal jewelry to stores and Beauty Salons mainly in California
Advantages Over Competition:
- Beauty salons are our focus, were our competitors caters first
and foremost to stores, and secondly to salons.
-Our staff is very experienced with a combined fifty-one years
experience in the Beauty Salon Industry between our five employees.
-We carry the latest and most up to date trends.
-Racks and displays are provided for our clients.
- Educational services are provided to our clients about the
latest trends, how to use our products in hair styling, and how to be a
successful retailer.
-We
are a multi-channel wholesaler offering trade shows, phone ordering, in-salon
showings, an online catalog, and a Seattle Showroom.
Competition Comparison of
Services:
Haircare Accents Noble and Wulf Chars of Laguna
Sells to Salons:
Focus on Salons: Yes No No
Sells Hair Clips: Yes Yes No
Sells Displays: Yes No No
Website: Yes Yes No
Provides Educational Shows: Yes No No
Does in-Salon Showings: Yes No No
Branded Line Soon No Yes
Operations
The core of Haircare Accents operations is our three-pronged
system of service. To fully employ the
system, we use multi-channels of service to serve our clients. Trade shows, in-salon visits, a website, a
Seattle Showroom, and phone ordering make up the channels of operations. In order to service these channels, Haircare
Accents has a warehouse in Eastern
Washington State Seattle
Haircare Warehouse:
Our warehouse is located in Middleton ,
Washington Seattle ,
four hours from Portland , an hour from Spokane , and six hours from Boise
In January 2004, Haircare Accents opened their Seattle Showroom in
a reconditioned building located between downtown and the U-District. We chose this location because it was
centrally located for clients coming from both Northern and Southern
Seattle and the rent is quite reasonable. Currently we have a lease through August
2004. The showroom serves as a place for
our Seattle
Merchandise Operations:
Currently,
Haircare Accents turns over its inventory twelve times a year. The high level
of turnover is crucial, because it is the fashion industry. Fashions have a relatively short lifetime,
and that is why we must stay on top of trends.
Because of this, we have to have extremely good vendor relations. We have spent years finding our suppliers. We have established strong relationships with
our current suppliers that give us flexibility and reliability, which allows us
to reorder quickly on the hottest merchandise.
The relationships have also given us some exclusive distribution
rights. Yet to find even better
suppliers, are also looking into sourcing from suppliers abroad. We have plans to attend buying shows in Korea and Mexico
Since our company is wholesale and has had a limited staff, we
have never implemented a complex inventory control system. Yet with the rapid growth our company is experiencing,
we are in the processing of purchasing a bar code scanning system that will
allow us to track all of the inventory that goes through the company. This system will also help is to track sales
trends and information.
Display System Operations:
Over the years, we have learned that Salons with effective display
systems sell far more accessories, than salons that do not, yet many of our
accounts would not go to fixture stores to buy displays. They said that the displays were too
expensive, and it was too much of a hassle to find the right displays. This was
when we realized that we needed to start supplying our clients with affordable
display systems. Currently, Haircare
Accents provides our clients with the opportunity to buy a wide assortment of displays
for their salon. We buy them in bulk
from a manufacturer that designs them specifically for our merchandise. This relationship allows us to buy
personalized displays at a very low cost, which we sell to our accounts at a
low profit margin. We are not trying to
make a huge profit on the displays; we are trying to make sure all of our
accounts use them. If they are too
expensive, they won’t buy them. By
making them affordable, we are insuring that most of our accounts will buy
them, and as a result, they will sell more accessories.
Educational Services
Operations:
We realized early on that hairdressers desire
educational shows. Our first shows
focused on the artistic use of our accessories.
We contracted with a professional platform artist (professional
hairstylist) to teach the course. The
success was great. Not only was our
attendance higher than our previous non-educational shows, but people also
bought more merchandise after seeing the creative ways to use the
accessories. Now our educational shows
offer artistic information, fashion information and business tips. We find that this package of educational
services helps to transform our clients from someone who just cuts hair, to a
fashion and style expert. They gain
confidence through these educational shows, and become more effective stylists
and business people. We currently hold
shows annually in Wyoming and Spokane ,
and will have our first Seattle
In 2005, Haircare Accents also plan to begin In-Salon educational
shows. These shows will be taught by our
sales staff, and they will help educate the salon owners and their employees
how to use our products, follow the latest fashion trends, and be a more
effective retailer.
Problems Addressed:
The main problem with Haircare Accents’ operations is our cash
flow. We have always been internally
financed. Due to this, we have had to be
more conservative with our funds. This
has caused us to keep a smaller inventory and limited amount of staff. Currently our amount of clients has outgrown
our small staff’s capacity to serve them.
Plus we have been invited to exhibit at more trade shows than we
currently have the staff for. Due to
our connections and growing client base, Haircare Accents plans to hire more
sales people as well as administrative assistant and shipping specialists. We feel that once these new employees join
our team, we will be able to attend more trade shows, due more in salon
showings, attract business to our website and as a result, grow at a much
higher rate. In order to achieve this
expansion plan, Haircare plans to seek venture capital to help finance these
efforts.
Management
Key Employees:
Alice Andrews, President. Alice Andrews has worked
in the Beauty Salon industry since the mid-1960's when her parents opened
Beauty and Barber Supply. In the late
1970's, she and her husband opened Hair Mechanics Warehouse in Laramie , Wyoming Alice Alice Alice
Arthur Andrews,
Vice-President of Operations. Arthur Andrews began working in the Beauty
Salon Industry in the late 1970's when he and Alice Andrews opened Hair
Mechanics Warehouse. After owning the
distributorship for eight years he and Alice Andrews sold Hair Mechanics
Warehouse in the mid-1980's. He stayed
on as a sales associate and Vice-president of Sales. In his eleven years as Vice-President of
Sales, Arthur was always the top-grossing sales associate at Hair Mechanics
Warehouse. He also won numerous
manufacturer awards from companies such as: Scruples, Nucleic A, and Sunglitz. Arthur came to work for Haircare Accents in
2000, and sales have risen astonishingly since his arrival. His experience in Sales and Distributorship
operations makes him an excellent Vice-president of Operations.
Stacey Williams, Vice-President of Marketing
Stacey has been around the Beauty Salon Industry since birth. She began working trade shows for Haircare
Accents at age 13. She is currently a
Senior Honors Student at the University of Washington Business School with a
focus in marketing. Stacey began working
for Haircare Accents full time in fall 2001.
She runs the Seattle Showroom and company website. Stacey adds a fresh, young perspective to
the business. Plus her education in
Marketing at the University
of Washington
Vice-President of Finance, To Be Selected: In Fall 2004, Haircare Accents plans to add a third key
management position of Vice-President of Finance. This person will be selected based on their
education and experience in finance and accounting.
Associates:
In addition to
the above employees, Haircare Accents has one full-time sales associate and a
part-time sales associate. Yet with the
rapid growth of Haircare Accents, we plan to hire more sales associates, an
administrative assistant, and packing specialists this year. The company also uses a wide variety of
consultants for legal, accounting, fashion and design.
Advisory Board:
Haircare Accents is in the process of forming our advisory
board. We have already secured two
hairdressers and an Advertising Creative Director to serve on our Advisory
Board.
Management Structure:
President Alice Andrews is
involved in all aspects of the day-to-day operations of Haircare Accents. She works closely with the Vice-Presidents to
support activities over which they have specific responsibility. Each Vice-President is given a wide degree of
decision-making authority in their area of the company.
Because the company has a strong
emphasis on customer service, we know that our staff must be highly motivated
to deliver this high level of customer service.
Therefore Haircare Accents has instituted a profit sharing plan. Each sales associate will share in 0.5% of
the profits over the annual goal each year.
This aligns the interests of our employees with the interests of the
company.
Community Involvement
Haircare Accents view its community as the Beauty Salon community in
general. That is why Haircare Accents
supports the Beauty Salon industry with donations to the Washington State
Cosmetology Association and Oregon State Cosmetology Association. These two organizations promote furthering
education of hairstylists as well as providing competitive contests for
hairdressing students. These Cosmetology
associations promote excellence in hairdressing, and that is why we choose to
support these non-profit organizations.
Development, Milestones, and Expansion
Long-Term Goals:
Haircare Accents plans to grow steadily over the next five years,
becoming the largest wholesaler of fashion jewelry and accessories to salons in
the Western United States . We want to provide a very high level of
customer service to our clients through our triple pronged system of service.
Another goal is for our brand Floralities to gain strong brand recognition as a
line of hip, fresh fashion accessories.
Strategy for Achieving Goals:
To accomplish this, Haircare Accents
plans to increase our staff to include sales associates in all of our region’s
major cities including: Seattle , Portland , Spokane , Boise , Missoula , Salt Lake City , Las Vegas , Phoenix , San Francisco , and
San Jose
We also plan to achieve our
expansion goal by using our new sales force to attend more trade shows each
year. This will result in an increase in
website and phone order sales. In order
to serve the website and phone orders, Haircare plans to hire an administrative
assistant and order packing specialists.
In order to keep our customer
service levels high, we will administer in-depth training to all of our new
sales associates. In addition, Haircare Accents’ profit sharing plan keeps
sales associates more motivated to provide excellent customer service. We also plan to keep our cultural base of
education alive in our company. This means that we will only hire very talented
platform artists for our educational shows.
We will also keep up to date on the latest fashion information and
trends by attending fashion shows.
In order to achieve strong brand
recognition for our accessory line Floralities, we plan to use creative
packaging and displays. We also plan to
keep on top of the latest fashion trends, using only the most stylish
accessories for our Floralities line.
Lastly we plan to implement an advertising plan to get the Floralities
name out there to the public.
Financials
Haircare
Accents has been increasing revenue by over 30% for in each of the past four
years without even adding more sales associates. We plan to expand our staff to include more
sales associates and staff employees this year.
In order to project sales for the next three years with the expanded
staff, we used historical financials and applied them to a larger staff. For example, with more sales associates, we
can increase the number of trade shows we attend, number of salons we visit,
etc. This can all be seen in the Sales
Projections section of the appendix.
The chart
below illustrates the projected sales revenues with an expanded staff, for the
next three years. It is divided up by
quarter.
We also used historical data to
project what the expenses would be with an expanded staff. These expenses are based on sales associates
working on commissions, and using many of our existing facilities. Below are charts
illustrating our projected gross profit and net profit after taxes:
To see more detailed financials
please see the appendix.
Conclusion
The major problem hindering Haircare Accents’
growth is sufficient capital to hire more employees, increase inventory, and
attend more trade shows. Haircare
already has thousands of clients in a twelve state area. They already have loyal suppliers. They have a staff with a combined fifty-one
years industry experience. They already
have a three-pronged system of service in place that is distributed through
multi-channels. They have all of the tough problems solved and can put the new
capital to immediate, productive use.
Appendix:
Financials:
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