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CityGirl Hair Salon Business Plan
“Bringing Our City to Yours”
Ashanti Weaver
MSM 520: Management of Resources
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CityGirl Hair Salon Business Plan
City Girl Hair Salon Executive Summary
CityGirl Hair Salon is a full service professional hair salon dedicated specifically to the art
of sew-in weaving. Sew-in weaving is a method that is used to add extensions and can be used
to hide one’s own hair (full sew-in) or simply to add length and volume (partial sew-in). Popularity
and demand for sew-in weaving is at an all-time high, making this the perfect season to start a
new venture in the beauty industry.
Upon start up CityGirl staff will focus their talents on offering professional hair care
services. Within the year CityGirl will expand to offer professional nail and makeup services to
clientele. The business will initially be located in Bowdon, a smaller city in Carroll County, Georgia
with plans to develop a salon in the greater Atlanta area. Staff as a whole will come together for
and coordinate all marketing efforts, but stylists will be individually responsible for building their
own clientele as the positions are commission based. Our competitive advantage lies in our
location and our services, as Bowdon is a smaller city on the outskirts of Atlanta near the campus
of University of West Georgia.
Generally female clientele prefer the allure of upscale salons; however, not everyone can
afford this luxury. For this reason CityGirl will provide the same quality hair styling without the
expensive pricing. CityGirl will target our customers by emphasizing sophisticated, ultra-hip
styling with a luxurious experience at affordable costs. The fact that sew-in weaving will be our
specialty is what will set CityGirl Hair Salon apart from other salons in the nearby areas; this will
be our main competitive advantage – offering a desired service that competing salons do not.
Total projected start-up costs total roughly $4,700 – not including any interior design. All
start-up costs will be financed by business man James Coleman and as of now the salon will not
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CityGirl Hair Salon Business Plan
be seeking outside funding. Since this will be a commission based salon, CityGirl owners will
provide all necessary tools and supplies required for styling. However, stylists understand that
they are responsible for securing and building their clientele. Our goal is to be a profitable
business beginning in the first month of operation as marketing and promotional material has
already gone out and the owner has begun soliciting business. Once stylists are selected the
entire CityGirl staff will collaborate on marketing efforts to build a stable clientele for the entire
salon. CityGirl Hair Salon will host its grand opening in late September, with plans for a soft
opening mid-August.
General Company Description
CityGirl will provide a wide range of beauty services and products. We will promote sew-in
weaving but will not be limited to one service. Atlanta is widely renowned as being one of the
hair care capitals in the United States, especially because it serves for the headquarters of the
hair product-producing company Bronner Bros. To separate ourselves from our competitors, our
commitment is to provide superb, swift service at an affordable cost in a great location. While
there are several “quick salons”, CityGirl will excel due its attention to detail and emphasis on
community and customer service. CityGirl aims to offer luxurious styling without the high end
costs to customers.
Our Mission: To be the premiere sew-in weaving salon in West Georgia by providing a high
level of service in an enjoyable atmosphere that will enhance our clients’ physical appearance
as well as provide mental relaxation.
Our motto: “Bringing Our City to Yours.”
Business structure: General Partnership
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CityGirl Hair Salon Business Plan
Business location: 101 W. Wedowee St, Ste A Bowdon, GA
Business owners: Ashley Williams and James Coleman
Staff: 5-7 professionally licensed stylists including owner Ashley Williams
Hours of Operation: Tuesday – Thursday, 8am-7pm; Friday 9a-7pm; Saturday 8am-6pm
Relevant owner experience:
Owner & Business Manager: Ashley Williams
Ashley has worked in the hair industry for over 10 years with training from elite stylists across
the country. She has also worked with Atlantic Records recording artists and other professional
celebrities. For the last year Ashley worked as Circulation and Promotions Manager for Bronner
Bros, Inc., a company internationally recognized as the largest private African American hair and
skin care producers in the United States. In this position Ashley was able to network with stylists
and business owners from all across the country and learn from other leading professionals in
the business. Ashley serves as owner and manager of day to day operations and staffing.
Financier & Business Partner: James Coleman
James is a business-savvy individual who has worked the last 10 years providing financial
investments for start-up businesses primarily in the greater Atlanta area. James contributed the
financial backing to secure the location and salon equipment and will oversee all profits and
losses. Any interior design and additional equipment that needs to be purchased will be overseen
and financed by James for the first 6 months of the business being open.
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CityGirl Hair Salon Business Plan
Products & Services
CityGirl considers our salon to be upscale and trendy as a professional beauty salon. Upon startup
our focus will mainly be offering hair styling services with our specialty in sew-in weaving, but
also including: cuts, color, shampoo, conditioning, styling (flatiron, curl, braid), relaxers, etc.
After the first 3 months of operations, plans include expanding our services for skin and nails.
We will also expand our target market and include men and children. By the end of the first year
of operation CityGirl hopes to be a full service beauty salon.
Primary Target Market:
CityGirl will be targeting women of all ages with the desire for a professional stylist and
pampering experience. It is not our goal to target any one particular age group or ethnicity. Sewins and extensions are becoming more popular among women of all ages so we are not looking
to exclude based on age, income level, or ethnic group.
Market Needs
The market need is for a conveniently located hair salon with skilled staff and reasonable pricing.
Granted the drive to Atlanta can be anywhere from an hour to two and to some that may seem
feasible; however our goal is to offer convenience to our target market so they don’t have to go
out of their way for the services they desire. The keys to success in our business are:




Location: providing an easily accessible location for customers with adequate parking
Environment: proving an environment conducive to giving relaxing and professional
service.
Convenience: offering clients a wide range of superb service at a fast pace
Reputation: reputation of the owner and other stylists as providing superior services as
well as maintaining great relationships with clientele.
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CityGirl Hair Salon Business Plan
Service Business Analysis:
The "hair" service industry is fairly diverse. On one end of the spectrum you have the traditional
barber; on the other end you have the fashionable boutique salons.
Somewhere in
between there are independent hair stylists, franchise barbers and stylists, and beauty salons.
SWOT Analysis
The following SWOT analysis captures the key strengths and weaknesses within the company,
and describe the opportunities and threats facing CityGirl Hair Salon in Bowdon as well as
surrounding cities in Georgia.
Strengths

Salon is located in a city with no other competitors specializing in sew-in weaving

Well trained and licensed employees with good styling skills and customer-focused
business practices

CityGirl targets women of all ethnicities rather than focusing on African American
women, like other competitors in the greater Atlanta area.

Pricing does not compete with other high end salons
Weaknesses

New entry into the market so there is a lack of brand equity that some of the salons in
the surrounding cities possess

Distance from the Atlanta metropolis could prevent customers from traveling to salon

Salon is located in a city of 2000 people, small population of clientele to target
Opportunities

A steady growing market that is traditionally unaffected by the economic environment
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CityGirl Hair Salon Business Plan

Increasing sales opportunities as more people from surrounding cities frequent CityGirl

Expanding clientele and target markets by offering additional services
Threats

Established competition from surrounding cities, particularly Carrollton, GA

Other salons that offer services for men and women
Competitive Edge
CityGirl Hair Salon is in its first year of business as a start-up company and we plan to use this to
our advantage. These days it seems many are looking for the next booming business and the
next big thing; something to bring in a fresh taste. A majority of hair salons that specialize in sewins are located in the heart of Atlanta. Bowdon, GA is more than 60 miles outside of Atlanta,
which be anywhere from 90 minutes to a 2 hour long commute in Atlanta traffic. We also feel
that we offer a competitive edge with our marketing efforts. Many of the salons we picked as
our major competitors focus solely on word of mouth advertising as well as the use of their web
page. We plan to have our stylists out in the Bowdon community meeting and drawing people in
face to face. We also will rely heavily on social media such as Facebook, Twitter, and Instagram
to showcase the talents of our staff and offer customers exclusive discounts.
Competitors:
Upon researching and surveying the neighborhood, there are no salons in the Bowdon area that
offer services for women, we believe primarily because it is a smaller city. Carrollton, GA is the
next nearest city with a few larger salons in the area, but again no salon specializing in sew-ins.
As CityGirl expands to offer makeup and nail services, additional competition will arise from a
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CityGirl Hair Salon Business Plan
few businesses in the area primarily because these salons have been in business for years and
have developed relationships with customers in the surrounding neighborhoods.
1. Chris Cole Salon – Professional salon located in Carrollton, GA offering bridal services, spa
services for men, women, and children. This salon would be our major competitor as they
do offer extension services, similar to sew-ins. They also offer complete spa services
which we plan to expand on in the near future, but will not be offering at the time of the
opening of the salon. This salon also has highly trained professional staff and prides itself
on their stylists having a broad range of experience and education. We could be
competing with this salon not only for clients, but for highly trained employees as well.
2. Elle Salon on the Square: Salon located in a shopping center in Carrollton, GA; offers
services for men and women as well as makeup artistry. Makeup artistry is one of the
main services we are looking to offer sooner than nail services so we would be competing
for women of all ages with this particular salon. This salon has one other advantage that
we do not at this time, and that is offering products for clients to purchase. We do not
yet have a deal in place with a vendor to sell products within our salon.
3. Hair Art Salon: Also located in Carrollton, GA, this salon offers professional styling services
for women, waxing, tanning, makeup artistry and bridal packages. This salon offers
tanning services, an area we do not care to venture in at this time so we will not be
competing for those clients. They too offer products available for sell within the salon.
4. Home stylists: We face much competition from people who solicit styling from their
homes. These people may or may not have a professional license, but they are often
cheaper than if a client were to book with a salon. The problem is that many customers
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CityGirl Hair Salon Business Plan
can see what services we provide and find someone to do the same service from their
home at a lower cost.
5. Additional salons in Atlanta: Atlanta is the nearest metropolis to Bowdon, GA therefore
the salons in Atlanta perhaps serve as the greatest competition if we hope to gain
clientele from other cities closer to and including Atlanta, GA. The problem is that there
are so many hair salons to choose from, as Georgia is home to more than 8,000 beauty
salons. But we feel that we will be able to serve our target market well, and that is any
woman in the Bowdon and Carrollton areas.
CityGirl Hair Salon Marketing Strategy
CityGirl staff will focus their talents on offering professional hair care services for women of all
ages. Within the year CityGirl will expand to offer professional nail and makeup services to
clientele. The business will initially be located in Bowdon, a smaller city in Carroll County, Georgia
with plans to develop a salon in the greater Atlanta area. Staff as a whole will come together for
and coordinate all marketing efforts, but stylists will be individually responsible for building their
own clientele as the positions are commission based.
Marketing Plan
As this is a start-up business, our goal is to provide a non-strategic approach to marketing rather
than a more formal plan. Based off the experience of the salon owner, our marketing plan
consists of a wide range of marketing strategies outlined below:

Community Outreach: One of our top advertising campaigns will be to reach out to the
surrounding businesses, schools and community leaders to announce our presence. We
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CityGirl Hair Salon Business Plan
have already initiated this by visiting other businesses, handing out flyers, and wearing
our promotional gear.

Discount Days: We will designate discount days to military personnel as well as students
of West Georgia University.

Promotional Material: We staged a professional photo shoot and the pictures were
included on promotional material such as flyers, social media, and are also displayed inhouse.
Flyers have been produced and disbursed throughout the surrounding
communities (Villa Rica, Douglasville, Carrollton). This will be on ongoing marketing tool
used on a regular basis.
Marketing and Promotional Material
Logo
$75.00
Flyers
$200.00
Banner
$54.00
Price Cards
$100.00
Photo Shoot
$300.00
TOTAL
$729.00

Social Media (Facebook, Instagram, Twitter): These social media outlets will be one of our
primary advertising tools. We will use social media to showcase stylists work, offer
discounts to the public, and showcase CityGirl staff within the surrounding community.
Facebook and Twitter pages were created in December to generate buzz for the opening
of the salon and both continue to be updated regularly.

Word of Mouth: In the beauty industry, WoMA is the most popular advertising tool.
When a client leaves a salon they immediately showcase their new look in person or via
social media, or are telling others about their experience. We will rely heavily on WoMA
to bring in new business and plan to reward our customers for their referrals.
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CityGirl Hair Salon Business Plan

Data Capture: A sign-in sheet at our receptionist desk will be used to create a mailing list
so that each client can be contacted and notified of any upcoming salon specials via email,
mail, and social media.

Radio Advertisement: Through connections within the entertainment industry,
promotional ads will be run via local media outlets including V103, Praise 102.5, and
104.1. This schedule will be coordinated with contacts at the respective radio stations.

Website: A website is not an urgent need in our marketing plan at this time, but it is a tool
we plan to use eventually to inform our clients of services and allow them to book
appointments. This will be created and updated frequently highlighting the work of
stylists. We will assess the market after 6 months to determine the need for a website.
Operations & Management
The operational plan calls for one receptionist who will greet customers and receive payments
for products and services. There will be five stylists, two braiders and two shampoo technicians.
Our stylists are independent contractors and will be paid on a commission scale of 40/60 based
on revenue generated – 40% to the stylist and 60% to the salon itself. Having braiders and
shampoo technicians will free up a stylist for other customers during that time. Braiders will be
paid $10 per client. The receptionist and shampoo technicians will each receive hourly pay at $15
per hour, with the receptionist at a maximum of 30 hours per week and the shampoo technicians
at a maximum of 20 hours per week. The remaining hours of operation we will have stylists and
braiders alternate covering the reception area if needed. While we do want our business to make
a generous profit, we want to be sensitive to the other obligations of our employees. These are
the staff requirements for the first year of business operations. Once the business expands and
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CityGirl Hair Salon Business Plan
stylists and the salon have built a stable clientele, we will reassess our staffing needs. All
employees will report to the owner only; the owner will be responsible for communicating any
financial issues with the business partner.
Performance Evaluations
CityGirl Hair Salon employees understand that without their efforts to build a stable clientele we
will have no customers. We are relying heavily on their ability to draw people into the salon as
well as their styling abilities so their customers can be word of mouth advertising for our salon.
Because Atlanta is considered one of the hair care capitals of the country, there is a variety of
stylists to choose from. We depend on our stylists to put forth their best effort and maintain a
stable clientele, understanding the selection of talent in the greater Atlanta area is vast. The
work of our stylists will be their evaluations. Should our employees not be able to maintain a
stable client base their efforts will be evaluated and termination imminent. If there are no
customers in the chairs CityGirl and our stylists are not making a profit and being that the hair
salon industry is such a lucrative one we can afford no empty seats. The same amount of effort
will be required from everyone no matter their position.
Start Up Expenses and Capitalization
Our goal is to be a profitable business beginning in the first month of operation. Rigorous
promotion will encourage clients to take advantage of our services. Because CityGirl is
commission based, we have offered to provide all equipment for our stylists within the realm of
what is listed in the tables below. Should stylists desire to use additional equipment and
products, they would need to get approval from the owner or purchase at their own cost. If in
the event our list of products changes, we will reassess. We anticipate the cost of most supplies
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CityGirl Hair Salon Business Plan
to be a monthly cost, particularly the Design Essential hair care products and other items that are
low cost and easily disposable. That will be included in our budget. For start-up we have allotted
$5,000 in securing the location of the salon and purchasing all equipment – not including any
interior design. The start-up costs will be paid by the financier James Coleman as part of his
contracted ownership in City Girl Hair Salon. Outlined below are the costs for the key essentials
in the opening of CityGirl Hair Salon:
Building Rent at Proposed Location
Avg. Electricity Bill
Security Deposit
Business License
Cosmetology Application
Equipment:
Three (3) Salon Stations/Mirrors
Three (3) Salon Styling Chairs
Two (2) Shampoo Sink Sets
Two (2) Hooded Dryers w/ Chairs
Reception Desk
Waiting Area Chairs
Television
Cash Register
Total
$450/mo
$150/mo
$450.00
$100.00
$125.00
$500
$375.00
$250.00
$250.00
$80.00
$100.00
$150.00
$50.00
$3,030.00
Supplies: (Design Essentials Hair care Products)
Supplies
Blowdryer
Flat Irons
Barbacide Jars
Barbacide
Braiding Hair
Weaving Net
Needle
Thread
Cost
$30.00
$30.00
$17.00
$5.00
$1.79
$1.99
$1.00
$2.99
Quantity Total
5
5
3
2
6
20
30
6
150.00
150.00
$51.00
$10.00
$10.00
$40.00
$30.00
$18.00
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CityGirl Hair Salon Business Plan
Combs
Application Brush
Application Bowls
Gloves
Apron
Styling Capes
Shampoo Capes
Processing Caps
Salon Towels
Hair Glue
Foam Wrap
HCO
Leave In Conditioner
Oil Sheen
LIQUID Reflections
Anti Itch Scalp
treatment
Edge Control
AMPRO Gel
Holding Spray
Cotton
Relaxer
Neutralizing Shampoo
Moisture Retention
Shampoo
First Lather Shampoo
Total:
$1.00
$1.00
$1.00
$2.99
$5.00
$5.00
$5.00
$2.00
$13.99
$1.00
$7.50
$7.50
$8.25
$8.50
$7.00
10
10
6
2
4
4
3
3
5
2
2
2
2
2
2
$10.00
$10.00
$6.00
$6.00
$20.00
$20.00
$15.00
$6.00
$69.94
$2.00
$15.00
$15.00
$16.50
$17.00
$14.00
$8.25
$5.50
$5.00
$13.00
$1.00
$26.00
$35.00
1
3
2
2
3
2
2
$16.50
$16.50
$10.00
$26.00
$3.00
$52.00
$70.00
$13.00
$13.00
$286.25
2
2
$26.00
$26.00
$947.44
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CityGirl Hair Salon Business Plan
Monthly Expenditures
Braiders
Shampoo Technician (2)
Receptionist
Projected Weekly Total
Projected Monthly Total
Rate
$10/client
$15/hr
$15/hr
Hours/Week
40 clients
20
30
Building Rent
$450
Avg. Electricity
$200
Rental Insurance
$75
Cost of
Supplies/Products
$1000
Projected Monthly Total
Total Monthly Expenditures
Total Payroll
$400.00
$600.00
$450.00
$1,450.00
$5,800.00
$1,875.00
$7,675.00
Projected Income
Minimum monthly income based on each stylist completing 6 clients per day
Service
Basic Sew In
Sew In/ Cut and Style
Full Closure Cut and
Style
Sew In/Cut and Style
Hair Included
Rate
$60.00
$75.00
Quantity/WK
45
35
Total
Income
$2,700.00
$2,625.00
-40%
$1,080.00
$1,050.00
Total Profit
$1,620.00
$1,575.00
$85.00
20
$1,700.00
$680.00
$1,020.00
$150.00
50
$7,500.00
$3,000.00
$4,500.00
$14,525.00
$58,100.00
$5,810.00
$23,240.00
($7,675.00)
$8,715.00
$34,860.00
150
Projected Weekly Total
Projected Monthly Total
Less Monthly Expenses
Total Monthly Profit
Minimum Annual Income: $697,200.00
Minimum Annual Profit: $326,220.00
$27,185.00
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CityGirl Hair Salon Business Plan
Maximum monthly income based on each stylist completing 10 clients per day
Service
Basic Sew In
Sew In/ Cut and Style
Full Closure Cut and
Style
Sew In/Cut and Style
Hair Included
Rate
$60.00
$75.00
Quantity
75
40
Total Income
$4,500.00
$3,000.00
-40%
$1,080.00
$1,200.00
Total Profit
$2,700.00
$1,800.00
$85.00
35
$2,975.00
$1,190.00
$1,785.00
$150.00
100
$15,000.00
$6000.00
$9,000.00
$25,475.00
$101,900.00
$10,190.00
$40,760.00
($7,675.00)
$15,285.00
$61,140.00
250
Projected Weekly Total
Projected Monthly Total
Less Monthly Expenses
Total Monthly Profit
Minimum Annual Income: $1,222,800.00
Minimum Annual Profit: $641,580.00
$53,465.00
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CityGirl Hair Salon Business Plan
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Berry, T. (2007). What You Sell. Retrieved from http://articles.bplans.com/writing-a-businessplan/what-you-sell
City Information: Bowdon, GA. Retrieved from http://www.city-data.com/city/BowdonGeorgia.html
Economic Census: Local Business Snapshot for Atlanta-Sandy Springs-Marietta, GA. Retrieved
from http://www.census.gov/econ/census/pdf/atlanta.pdf
Elle Salon on the Square. Information retrieved from http://www.ellesalononthesquare.com
Hair Art Salon. Information retrieved from http://www.hairartsalonga.com
Industry Information Sheet – Beauty Salons (NAICS 812112) including Day Spas. Retrieved from
http://www.georgiasbdc.org/pdfs/beauty.pdf
P., K., Isenberg, D., Herzig-Marx, J., & Yang, S. (2010). Social Media Customer Leaders: Some
Early Performance Data: Interaction. Harvard Business Review. Vol.88, Issue 5, p20.
The Chris Cole Salon. Information retrieved from http://www.chriscolesalon.com/
Trusov, M., Bucklin, R., & Pauwels, K. (2009). Effects of Word-of-Mouth Versus Traditional
Marketing: Findings from an Internet Social Networking Site. Journal Of Marketing. Vol. 73,
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