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ETHOS GSFM 2013 Business Plan


Table of Contents

1. Project Description.........................................................................................1 2. Mission...........................................................................................................1 3. Objectives......................................................................................................1 4. Business Strategy..........................................................................................2 5. Keys to Success............................................................................................2 6. Management..................................................................................................3 7. Market Analysis Summary..............................................................................4 8. Market Segmentation.....................................................................................4 9. Marketing Startegy..........................................................................................5 10. Service Business Analysis............................................................................5 11. Capitilization Start & Use of Proceeds..........................................................6 12. 3 Year Summary Pro Forma..........................................................................7 13. Competition & Buying Pattern.......................................................................8 14. Competitive Edge.........................................................................................8 15. Exit Strategy..................................................................................................8 16. Contact..........................................................................................................9


Confidentiality Statement The Recipient of this document ackonowledges that the information provided therein by Ethos Grooming Station for Men LLC (hereinafter “Discloser�) is Confidential and Proprietary to Disclosure. Therefore, the Recipient agrees not to disclose any information therein, other than that which is in the public domain, without the express written consent of the Discloser. The obligations of the Recipient shall be continuing until the Confidential and Proprietary Information disclosed to the Recipient is no longer confidential.


1.Project Description Ethos Grooming Station for Men (ETHOS|GSFM) is a men’s grooming company designed to bring quality grooming products and services to busy gentlemen in locations generally devoid of such amenities. ETHOS|GSFM reimagines an age old institution by creating enduring solutions and rich, novel rexperiences that reconnect the modern gentleman to comfort, convenience and service excellence. It serves as the definitive grooming alternative to the conventional! Along with the services one would find at a traditional barber shop (haircut, hot towel shaves, etc.) ETHOS|GSFM plans to offer additional services that will make it the one stop shop for men’s grooming. These services include facials, massage, hot towel shaves, & hand maintenance. Additionally, ETHOS|GSFM will offer the finest in skin care & shaving products to our clients for retail purchase.

2. Mission Our mission is to redefine the culture of men’s grooming by re-imagining an age old institution with creative, enduring solutions that reconnect the modern gentleman to comfort, convenience and service excellence.

3. Objectives 1. Achieve over $37,000 in sales in month 3 by performing 12 services per day. 2. Achieve over $50,000 in sales in month 6 by performing 19 services per day. 3. Have a local client return rate of 90% by the end of first 12 months. 4. Form strategic relationships with businesses with like clientele within first 12 months to establish the ETHOS|GSFM “satellites” critical to our brand identity. 5. Become an established local brand for mens grooming by the end of first 18 months. 6. Successfullly establish Philadelphia as ETHOS|GSFM headquarters and begin expanding to like markets by year 3.

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2013 Business Plan for Ethos Grooming Station For Men


4. Business Strategy Our business strategy is to create an experience that is second to none in the industry. Our mobile grooming station answers this call by creating a novelty that reimagines the method in which grooming services have been traditionally performed. By strategically partnering our concept with prestigious businesses, office buildings and hotels we plan to bring added value to the list of amenities they already provide their tenants, visitors, patrons and clients and subsequently create a network that allows us to service our demographic like never before. In addition, ETHOS|GSFM requires a significantly lower investment and operation cost compared to the traditional “brick and mortar” barber shop/salon. Therefore, coupling the aforementioned qualities with our mobile DNA allows us to establish ourselves in prestigious locales while yeilding exceptional profit margins. Finally, with our incessant attention to the details (service, branding, brand identity, marketing and location), we plan to maintain high client retention, distinguish ourselves from the competition and ensure the success of our launch and subsequent growth.

5. Keys to Success Marketing- We plan to contract proven marketing specialists, graphic designers and sales professionals to create the an image that will not only locate, connect to and identify our targeted demographic but also reflect our commitment to service excellence. Professional- This includes everything from maintaining confidentiality to hiring the finest licensed professionals to serve as brand ambassadors trained specifically to model the ETHOS|GSFM principals of service excellence. Individual Attention- Technology will be available to do everything from making and confirming appointments on personal mobile devices to collecting data on previous services to improve upon each individual experience. In addition, amenities such as complimentary shoe shine and drinks (where applicable) aim to provide a more engaging and personalized experience. Repeat Business/Recommendations- With referral programs. gift cards, membership packages and general professionalism we plan to identify, invest and cater to our loyal customers that will encourage such ones to return and recommend us to family, freinds, and colleagues. Service Menu- Creating a service menu that is simple and specific, addressing the everyday needs of our demographic, will allow for services to be completed within an approximate 30 minute time frame; getting our busy clientele back in the game promptly and effeciently. Location- Center City, Philadelphia. The city’s chief financial district is known for its unique ability to attract, not only professionals, but also actors, celebrities, musicians and artists alike. Locating ourselves in this area with new thriving residential communities, that include million-dollar high-rise condominiums, upscale shopping, and fine dining, we feel we will be in the ideal spot to conduct business successfully. Strategic Partnerships- Using our unique and proprietary mobile grooming station to partner with businesses and institutions with like demographic affords us the ability to create a system of “satellite” locations that will deliver our premier services to our clientele, in various settings. Additionally, it creates a means for our partners to better capitalize on consumer patterns without the huge investment. 2013 Business Plan for Ethos Grooming Station For Men

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6. Management Team ETHOS|GSFM is a Limited Liability Company founded by Jonathan M. Jacobs. Jonathan has over twelve years of project management experience in the field of Architecture. During his tenure he has cultivated solid client bases and have led design and construction teams for a number of multi-million dollar projects in the tri-state area. Those projects extend over the retail, commercial, hospitality and lifestyle industries. In recent months however, Jonathan has decided to focus his attention solely to the development and launch of ETHOS|GSFM. Jonathan’s background lends itself to fully understanding the dynamics of managing a project such as ETHOS|GSFM; that in order to redefine the culture of men’s grooming one must completely comprehend what it is that needs to be redefined. It will take more than involving industry professionals or simply reforming the deficiency with services provided at traditional day spas and barber shops. It will take skillfully packaging the experience, service and function through great design and well thought out programs that create comfort and offer smart solutions for the modern gentleman. Jonathan believes he has succesfully satisfied such criteria in ETHOS|GSFM and has built the best team possible to ensure the company’s success through creative and smart ingenuity!

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2013 Business Plan for Ethos Grooming Station For Men


7. Market Analysis Summary There are about 18,000 spas in the U.S. and Canada, according to ISPA (International Spa Association). 80% of which are day spas. Spa Industry revenues in the U.S. totaled $12.8B in 2008 and has continued to grow at a rate of 18% per year despite the ailing economy*. Day Spas account for about $7B of this figure. The US hair care services industry includes about 86,000 establishments (82,000 beauty salons; 4,000 barber shops) with combined annual revenue of about $20 billion**. With regard to our more specific genre, the male grooming industry is reported to be worth over $30B*** and growing annually at 8 percent. ETHOS|GSFM is primarily targeting potential male clients who live and/or work within a 5-15 mile radius of Center-City Philadelphia. These potential clients will be between the ages of 30 to 60, have a household income of $100k+, and have an interest in maintaining a well groomed appearance. The 2010 Census reported that the City of Philadelphia had approx. 1.5 million residents; of which 46.5% were men (697,500). According to a September 2010 report by the Central Philadelphia Development Corporation and the Center City District, Center City provided 267,331 total jobs. According to that same report, 51% of Center City private sector jobs are held by Philadelphia residents (114,285). Assuming that roughly half of these total jobs are men, ETHOS|GSFM has a base demographic of 133,665 male individuals to market to, of which 57,143 live within the Center City limits. Our secondary market will include male visitors staying in local hotels. According to Tourism Economics the Philadelphia region welcomed 36 million domestic visitors in 2009. These visitors filled 735,000 Center City hotel rooms and pumped $8.2 billion into the local economy. Our market analysis concludes that Philadelphia and cities comparable are ideal to play host to the ETHOS|GSFM concept and support its growth. * ISPA 2009 U.S. Spa Industry Update **Hoover’s 2013 Hair Care Services Industry Description ***Datamonitor /Emerat Business Review 2.11.09

8. Market Segmentation As individual as our clients are, they seem to fall into one general category: Self-Maintenance/Image Conscious. Additionally, the booming anti-aging market is a relevant subcategory that provides additional momentum. Therefore, with ETHOS|GSFM focusing on this group, it enables us to market more directly and thus concurrently boost our retention capability. The self-maintenance/image conscious group: • Individuals with high disposable income. • Those who obtain haircuts/shaves one to four times per month. • Those interested in anti-aging and self-maintenance. • Professionals with time sensitive careers. • Clients who are staying in local hotels that do not offer barber services.

2013 Business Plan for Ethos Grooming Station For Men

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9. Marketing Strategy In order to reach these potential clients our marketing strategy consists of the following*: Location Traffic Local Advertising Seasonal Promotions Benefits and Networking Events Gift Certificates Social Media/Blog Mobile Advertising Strategic Partnerships

10. Service Business Analysis We are part of the retail health and beauty industry, which has four major types: 1) Salons with Day Spa Services: Hair salons that offer limited spa services like massage and facials. 2) Heath & Beauty Products: Stores selling only merchandise products, covering the wide range of products available, but not inclusive of those sold by salons and spas. 3) Hotels with Spa Services: Major hotels with on-site spas. 4) Medical Spa: Focus mainly on non surgical cosmetic but also have massage therapy, facials and microdermabrasion.

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2011 11 Business Bfor usiiness Plan Pl l Grooming ffor or E Ethos thos h G Grooming roomi ing SStation tatiion ffor or M Men en 2013 Business20 Plan Ethos Station For Men


11. Capitilization Start & Use of Proceeds Approximately $10,000 has been invested by the founder. An additional $70,000 will be needed to fund ETHOS|GSFM’s startup. This amount will be secured through private investing. The following information outlines the start-up expenses involved with opening ETHOS|GSFM: Renovation, Decor and Furnishings- $10,000 New Unit Fabrication (2)- $30,000 Marketing/PR - $7,000 Backbar Supplies/Retail Product Inventory - $2,000 POS Hardware (tablets, smartphone, etc,) - $2,000 Barber/Shaving Equipment - $2,000 Miscellaneous Equip. - $1250 Signage - $500 Appointment & Record Keeping Service - $500 The remaining funds will provide ETHOS|GSFM the necessary resources to build a world class team of brand ambassadors to reinforce our commitment to world class client experience.

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12. 3 Year Summary Pro Forma There are five main areas of income: barber/shave, facials, manicures, hair removal and retail. These offerings will average approx. $47 per service. The basis for the sales projections is a conservative avegrage estimate of 31 services per day the first month in business and 66 services per day by the end of the twelve months. At 66 services per day we would be operating close to 85% of capacity operating 5 days a week, 8-10 hours per day Monday thru Friday. On retail products the gross margin is consistently 50% across the board. The retail lines go in conjunction with the services as an extension of the experience. The more customers are serviced the more retail sales that will be driven. These high-end grooming products are specialized products that generate repeat purchases. The premier element to our financial plan is initiating, maintaining, and improving the factors that create, stabilize and increase our cash flow. These factors include service excellence, smart marketing and aggresive expansion. By initiating our expansion plan within the first 12 months, we expect to see exponential growth that will push the net worth of ETHOS|GSFM well past the projected $800,000+ at the end of year three.* * See ETHOS|GSFM FInancial Projections for details.

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2011 11 Business Bfor usiiness Plan Pl l Grooming ffor or E Ethos thos h G Grooming roomi ing SStation tatiion ffor or M Men en 2013 Business20 Plan Ethos Station For Men


13. Competition and Buying Pattern The Philadelphia market plays host to several existing barber shops, day spas and a number of individual LMTs. However, there are only 3 establishments we consider our direct competitors. Those establishments areThe Art of Shaving, American Male and Style of Man. The Art of Shaving is a national chain of barber spas that has an exclusive product line that is sold at many other establishments nationwide. They are located in the Center City Philadelphia and have a similar service menu to what will be offered at our establishment. The main drawback we find with The Art of Shaving is that their location is not within the financial district of Center City where the bulk of our shared demographic work. Instead, there location at 16th and Walnut is on Center Cityâ&#x20AC;&#x2122;s major shopping strip which has potential clients walking a number of blocks to benefit from their service.Thus, their location becomes an inconvenience for the busy Center City gentlemen. American Male is a franchise with a semi-national presence that provides similiar services to what ETHOS|GSFM plans to offer. However, due to their branding and overall quality of esthetic and services they tend to draw the low to middle portion of the Philadelphia male demographic. Style of Man is yet another competitor for ETHOS|GSFM, located within the Shops at Liberty Place at 16th and Chestnut. Again, they have a similar service menu. However, the overall experience seems to be centered solely on the service providers being good looking females. Outside of that, the experience lacks the that exceptional quality that the distinguished gentlemen seeks.

14. Competitive Edge The competitive edge for ETHOS|GSFM is that we are focused on bringing a quality product, quality service and exceptional experience to locations where gentlemen already are. We have taken what our competitors do well, and not so well, and created an enduring solution that reconnect the modern distinguished gentleman to comfort, convenience and service excellence. At present, there is no direct competitor, locally or nationally, focusing on this particular demographic with this particular strategy By combining this edge with effective marketing, strategic partnering, aggresive expansion, and the creation of a strong brand identity with our demographic, we believe this will position ETHOS|GSFM solidly within the Philadelphia menâ&#x20AC;&#x2122;s grooming market and and ensure a huge success.

15. Exit Strategy Opportunity to divest in ETHOS|GSFM will take on the following form: - Acquisition of the Company

2013 Business Plan for Ethos Grooming Station For Men

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16. Contact Jonathan M. Jacobs m: 267.269.3889 jjacobs@ethosgsfm.com

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2013 Business Plan for Ethos Grooming Station For Men


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