I.
EXECUTIVE SUMMARY
“Positioning is the marketing tool that helps prospects and customers identify what’s
unique about your product, service or company. Use positioning to give your advertising
purpose, to give it a message, and to give it the appropriate tone. Then and only then, are
you on your way to developing a good advertising strategy.”
-Noel Peebles, Author of Sell Your Business the Easy Way
A place where peace and relaxation can fulfill your every need, through positive
atmosphere and customer centered services, Belle aime Salon and Spa establishes a
welcoming salon and spa dedicated to achieve every customer’s wants and needs. It will be a
high-end, local business that will pride itself on personal connections with every customer
that will expand each stylist’s clientele, and create a growing business that aspires to
constantly increase revenue.
Start-Up
Belle aime Salon and Spa ‘s goal is to encompass a
strong base of customers by reaching out to the local
community and educating them of its fantastic services and
products it has to offer. Our ideal location with high traffic
counts, visibility and growing neighborhoods puts Belle
aime Salon and Spa in a well suited position to thrive.
We have created a three-step plan designed to maximize
profits, increase clientele, and contribute to the success of
our salon. These steps entail providing our customers with
the option to receive discounts and loyalty rewards,
creating various social media accounts, and marketing
through word of mouth.
Proposed Organization
After researching, we concluded to establish a Limited Liability Partnership between Ally,
Anna, and Claire. A partnership consists of a relationship between more than two persons
carrying on a business joint venture with a view to profit, each incurring liability for losses
and the right to share in the profits equally. A Limited Liability Partnership (LLP) was chosen
because each person is not responsible for negative actions taken by other partners or for
the debts of the business. As three partners we have decided to split the Partnership
responsibilities equally at 33.33% for each partner.
Finances
The graph below is our gross profit, for the first year starting in February. As you can see it
is estimated to start at around $15,921.60 and it
should increase to about $31,680.60 by the end
of the first year. Our net cash at the end of our
first year is projected to be around $123,102.31.
When inquiring a $75,000 loan from Wells Fargo,
we are prepared to pay an 8% interest rate,
which is the current standard rate for most loans.
Our plan of action for paying back the loan is to
pay $1,010 (including interest) per month
2
II. Introduction
Belle aime, meaning Beautiful Soul, is planned to be a locally owned hair salon and
spa, opening in 2014. It will be located in Lakeville, Minnesota, a south suburban city of
Minneapolis and St. Paul. Belle aime Salon and Spa
will have a variety of services, including skin care, nails,
nail enhancements, waxing, massages, and hairstyles. Our
main goal is to create an upper end salon with satisfied
customers in an appropriate atmosphere as well as to have
high-end employees. Our competitors are Salon Onyx,
Studio Bodair, and Infinity Salon and Spa. Belle aime
Salon and Spa stands out from its competitors because of the high quality services we will
be providing. The salon will differ from
competitors by the new idea of
introducing iPads at each hair station.
This idea will create an intriguing
atmosphere to our main target market
of
middleaged
women. The iPads will be used with the ability of Internet
access as well as applications for business use, and ideas of
hairstyles. As new entrepreneurs, we believe this idea will
draw women into our salon, so they can multi-task.
3
Our main marketing strategies will be through referral. Our goal is to keep people
aware of the services and everything offered as a business. Other marketing strategies
include advertisements through social media, and word of mouth. Belle aime Salon and
Spa will be a Limited Liability Partnership between Ally Dorazio, Anna Roth, and Claire
Joyce. Each will have separate responsibilities to equally contribute to the success of the
salon. Our annual revenue is expected to be around $400,000.00 yearly, and we will strive to
increase these numbers as our business grows. The characteristics we will look for while
hiring new employees is the ability to bring in good clientele, positive attitude, and
professionalism. Certain products that we will display include “It’s a 10”, “Pureology”,
“Lanza”, “Jane Iredale”, ‘Kenra”, “Moroccan Oil”, “OPI”, and “Murad.” One aspect that will be
unique about Belle aime Salon and Spa is that it not only styles hair, but it also carries a
variety of other services and products including makeup and facial creams. Belle aime
Salon and Spa aspires to provide excellent customer service. This peaceful, social
atmosphere will set Belle aime Salon and Spa apart from many competitors.
III. ANALYSIS OF THE BUSINESS SITUATION
4
A. Self-Analysis
The three partners of Belle aime Salon and Spa are a perfect mix of dedication,
entrepreneurial drive, and salon-based knowledge that will contribute greatly to the
success of the business.
Ally Dorazio has experience with the many roles it takes in owning a salon. Last
year she designed a business research services and operating plan for a local salon in
Lakeville, MN. The project gave her the knowledge it takes
to run a salon, maintain customer service, and promote
salon services/products through the website. Not only does
she entail knowledge of salons, but also some of her
personal business strengths are organization,
determination, and passion. She has worked at a fine dining
Italian restaurant for the past two years; learning how to
provide customers with excellent service, being a leader to other employees, and
filing/organizing customer rewards. When the salon is open, she plans to take part in
contributing to the success of the business by; controlling and maintaining finances,
providing excellent customer service, and establishing a friendly and peaceful
atmosphere in the salon.
Anna Roth has considerable amount of experience with
the salon industry. She has worked at a local salon in Lakeville
for over a year and a half and has gained knowledge in the
areas of salon management, services, products, clientele, and
customer service. Anna’s strengths include organization,
5
perseverance, customer service, and rational decision-making. When the salon is open,
she plans to take part in contributing to the success of the business by establishing and
directing advertising to the target market, and managing distribution for the products,
supplies, and equipment.
Claire Joyce has had numerous roles in operating a salon. In previous years, she
has created a market research project, implementing new ideas for a small local business.
Through this experience she learned necessary skills it takes to open her own salon such
as; customer service, organization, marketing techniques, and financing. She also has
personal experience, working at two local salons in the metro
area over the past year and a half. When the salon opens, she
plans to manage staffing to reach maximum clientele by profit
sharing, promote product sales to achieve maximum profit, and
create customer service, that will keep customers wanted to
come back to our warm-welcoming salon.
B. Trading Area Analysis
1. General Data
Choosing the location of our salon was the most important aspect in starting our
business. Where our salon is located can be a large factor in determining the success of
our business. When researching the demographics of Lakeville, we found two ideal places
to start our business. The ideal characteristics included high traffic counts, visibility, and
growing neighborhoods surrounding.
The first location we looked at was located at 17305 Cedar Avenue Lakeville,
Minnesota, and the second location was chosen at 17592 Dodd Boulevard Lakeville,
Minnesota.
6
According to City-Data.com the data found below shows that Lakeville has one of
the highest incomes in the metro area. The surrounding cities are located within thirty
minutes of Lakeville. The high-populated cities will attract great clientele, and being that
Lakeville has one of the highest income rates, our salon will have a remarkable upperclass market.
2. Competitive Data
Belle aime Salon and Spa is a salon
that donates a portion of the profits to local
charities. This separates our salon from
competitors because we allow our customers to
get their hair done or receive a soothing massage,
and be able to help out citizens in need within our
local community. Although we have many
7
competitors in the area, our salon is unique in the fact that we will have customers donate to
Locks of Love, while enjoying their time of relaxation. Many other competitor salons carry
this feature, but the difference is we want to create an impact for those fighting
chemotherapy and cancer. Advertisement within the local newspaper, social media sites, and
word of mouth will market women in the area to donate their hair.
Another feature we will carry in our salon that makes us more unique is that we will
carry iPads at each hair station. In the Salon Survey, one question we asked was “Do you
think iPads would be a nice feature to add to your experience to the salon?” When
researching surrounding salons, we realized this great feature would make our salon stand
out from our competitors, since 80% of our responders said “yes” to the iPad question.
The closest salon to Belle aime Salon and Spa is Salon Onyx. It is considered a
direct competitor, because it is 0.2 miles away, the closest salon in distance. Even though
Salon Onyx provides similar services such as haircuts, colors, and skin services; it will not
impact our business, as we provide more services to our clientele. The location of Salon
Onyx is an additional issue. It is located in a strip mall, so the visibility does not stand out.
8
Studio Bodair is a hair salon and spa located 3 miles away from our location. They
specialized in hair services as well as massages and waxing. Although this salon has
similar services to Belle aime Salon and Spa, Studio Bodair does not advertise their
services, and therefore its target market is unclear. We consider Studio Bodair an indirect
competitor because although they provide many different services, they are not focused
on the target market and advertising.
Infinity Salon & Spa is location about 6 minutes away from Belle aime Salon
and Spa. It is considered an indirect competitor because the salon is a lower-end salon.
Its services are the same as what Belle aime will provide, except Infinity Salon has
cheaper prices, and less experienced employees. The atmosphere inside Infinity salon
compares to many franchise salon businesses, as there is no upper-classed theme.
9
Pictured to the right, are strengths, weaknesses, opportunities, and threats for a
business through a professional format known as SWOT analysis. It is a tool used as a way
to analyze and evaluate a
businesses current situation
and environment. SWOT
Analysis can be used in goal
setting to help identify a
business’s goals, and also for
strategic planning in a
business.
C. Market Segment
Analysis
Dakota County
is the 4th wealthiest county
in Minnesota; because of this
our target market is middle-upper class, middle-aged women. We chose this target market
based on the high average income in Dakota County, and this means that people with a higher
income will generally spend more and take advantage of the many services that our salon has
to offer. Due to the demographics surrounding the area, we will have a strong market appeal.
Statistics support our choice that Dodd Boulevard is the right location for Belle aime to
create an upper-end salon. The average age in Lakeville, Minnesota is 34 years old; this
information is sufficient since this age is within our target market age range. In Lakeville
27,903 people are women out of 55,908 people total. After completing a survey, we found that
70% of the responders were 40 years and older. This data supports our specific target market,
10
targeting women around 40 years old. In the graph below you can see the Female Population
divided into age groups and the largest age group, our target market, was 40-49 years old.
D. Analysis of Potential Locations
When choosing a location for our business, we considered the location in relation
to the owners for constant oversight of the business. We also considered the
demographics and geographic location of our business and how successful our business
would be in this chosen area. As we carefully analyzed this, we narrowed our decision
down very quickly.
The first location we looked at was
located at 17305 Cedar Avenue Lakeville,
Minnesota. The building was easily
accessible, it was recently built in 2004, it
has monument signage, and a reasonable
11
size of a 1.93-acre lot. At first glance, this building seemed the perfect fit for opening
Belle aime Salon and Spa, but after researching a little more, we found that the
building was meant for office space only, and it is shared with other businesses.
Our final location was chosen at 17592 Dodd Boulevard Lakeville, Minnesota. We
chose to build our salon here
because it is located at a very
busy intersection. The roads
intersecting are Dodd Boulevard
and Cedar Avenue, and the
average traffic going on these
roads daily is around 17,800 on
Cedar and around 11,200 on
Dodd. This location is ideal
because of the high traffic counts, exceptional visibility, and growing neighborhoods
surrounding. The population of the city of Lakeville is 55,594, and 28% of the entire
population is employed. The average household income is $90,689, which is about 40%
higher than the average Minnesota income.
We looked at a company located on the border of three cities; Farmington, Apple
Valley, and Lakeville. With this building in consideration, our next decision was whether
to purchase or lease. The building was previously a clothing store, and so we realized we
would have to do a lot of remodeling.
12
IV. PLANNED OPERATION OF THE PROPOSED BUSINESS
A. Proposed Organization
Belle aime Salon and Spa will be a Limited Liability Partnership between Ally Dorazio,
Anna Roth, and Claire Joyce. A partnership consists of a relationship between more than two
persons carrying on a business joint venture with a view to profit, each incurring liability for
losses and the right to share in the profits equally. After interviewing the salon owner of Studio
Bodair, Lori Barum, we decided that a partnership was the ideal option for us. A General
Partnership was not chosen because all partners would be responsible if one partner were sued.
A Limited Partnership was not chosen because the partners would not be able to participate in
management process, and we would have to hire more investors. We ended up choosing a
Limited Liability Partnership (LLP) because each person is not responsible for negative actions
taken by other partners or for the debts of the business. As three partners we have decided to
split the Partnership responsibilities equally at 33.33% for each partner. Even though we have
different responsibilities and strengths to give to the business, we will work together to achieve
a successful salon.
Along with the three owners, Belle aime Salon and Spa will employ four receptionists,
20-30 high quality cosmetologists, and one full-time manager. We will add to our employees on
an as-needed basis after opening the salon. At all times, at least one owner or manager will
always be present during open business hours. Staff responsibilities will vary between each job
position, but our main goal for all staff is to provide customers with excellent customer service,
and give them a relaxing, inviting salon experience.
13
Our store hours are:


Monday-Thursday: 9am-9pm
Friday-Saturday: 9am-6pm

Sunday: Closed
B. Proposed Product/Service
Belle aime Salon and Spa will offer and sell a variety of hair and body services,
as well as, high-end beauty products. On the table below are Belle aime Salon and
Spa’s services:
Skin Care
Nail
Waxing
Massage
Services
Facial
Manicure
Full Face
Half
Hair
Technical
Services
Services
Haircut
Extensions
Color
Session
Makeup Application
Polish
Eyebrow, Lip,
Full
Wash and
Change
Chin
Session
Style
Peel/Exfoliation
Gel Polish
Bikini/Brazilian 75 Minutes Blowout
Foil
Airbrush Tan
Pedicure
Back/Chest
Perms
90 Minutes Beard/Bang
Our salon will also reach out to a charity called “Locks of Love”. It is a non-profit
charity based in the United States. The organization accepts donations of human hair and
money with the stated intention of making wigs for Americans with medical conditions
that have caused them to lose their hair. For a client to donate to Locks of Love, the
minimum requirement of hair length is ten inches. After donating their hair, the donor
14
will receive a complimentary hair cut, and the price of their haircut will be donated from
the salon to Locks of Love.
C. Proposed Marketing Strategies
Our proposed promotional plan
consists of three steps. It is designed to
maximize profits, increase clientele, and
contribute to the success of Belle
aime Salon and Spa.
The first step is to provide our
new customers with the option to
receive discounts and loyalty rewards.
We will set up an email list to promote
services and products with frequent
visitor coupons. Rewards for customer loyalty will include 50% off any service or product
after twelve visits. In our Salon Survey, 66% of the responders said they visited their
salon once a month therefore; they will receive annual coupons from us to show our
appreciation.
The second step is to create
multiple social media accounts.
Marketing throughout the
community will include Newspaper
and social media ads and coupons
to keep the public reminded of our
15
high-end salon and excellent services. According to our Salon Survey results, 71% said
that social media was the most effective form of marketing. We will create a Belle aime
Salon and Spa Facebook page, and post statuses relating to business updates and
promotions. We will also create a Twitter, Instagram, and Groupon account, so customers
can actively participate in a variety of social media networks. Our second step will not
only increase clientele, but it will also advertise Belle aime Salon and Spa’s company
to many local citizens.
The third step of our marketing strategy is word of mouth. As we start our business,
we will build a new clientele by connecting with the youth of local cities including
attending fairs, carnivals, and parades. Here we will be offering services such as braids,
colored hair extensions, “fair hair” (teased and sprayed with color), and makeovers.
Business cards and informational flyers will be given to each child's guardian. This gives
us an opportunity to make relationships with local families and spread the word of our
salon. Our customer referral rewards policy is that with each referral they will receive
15% off their next service of the same the referred customer purchases.
V. PLANNED FINANCING
A. Projected Income and Expenses
1. Projected Income Statements
16
9,374.40
15,921.60
8,000.00
300
1,010.00
1,000
2,000
1,648
750
1,000
750
200
Cost of Goods Sold
Gross Profit
Expenses
Rent and Utilities
Insurance
Loans and Interest
Marketing
Technology
Beauty Supplies
Office Supplies
Salon Decoration
Miscellaneous
Emergency Fund
20,608.00
-4,686.40
0
-4,686.40
-4,686.40
64,541.60
Total Expenses
Operating Income
Taxes
Income Tax (35%)
Net Income (Per Month)
Sum of Net Incomes
Earnings in Account
Payroll Expenses
Owners
Full-Time
Part-Time
Total Payroll
0
3,200.00
750
3,950.00
25,296.00
25,296.00
Jan-14
Sales
Revenue
Total Revenue
17
-1,376.40
0
-1,376.40
-6,062.80
63,165.20
17,298.00
0
3,200.00
750
3,950.00
8,000.00
300
1,010.00
700
200.00
1,988
200
250
500
200
9,374.40
15,921.60
25,296.00
25,296.00
Feb-14
-676.40
0
-676.40
-6,739.20
62,488.80
16,598.00
0
3,200.00
750
3,950.00
8,000.00
300
1,010.00
500
200.00
1,588
100
250
500
200
9,374.40
15,921.60
25,296.00
25,296.00
Mar-14
607.60
212.66
394.94
-6,344.26
62,883.74
23,018.00
6000
3,200.00
750
9,950.00
8,000.00
300
1,010.00
500
200.00
2,308
50
250
250
200
13,910.40
23,625.60
37,536.00
37,536.00
Apr-14
837.60
293.16
544.44
-5,799.82
63,428.18
22,788.00
6000
3,200.00
750
9,950.00
8,000.00
300
1,010.00
500
200.00
2,228
50
100
250
200
13,910.40
23,625.60
37,536.00
37,536.00
May-14
970.08
339.53
630.55
-5,169.27
64,058.73
22,788.00
6,000
3,200.00
750
9,950.00
8,000.00
300
1,010.00
500
200.00
2,228
50
100
250
200
13,777.92
23,758.08
37,536.00
37,536.00
Jun-14
970.08
339.53
630.55
-4,538.72
64,689.28
22,788.00
6,000
3,200.00
750
9,950.00
8,000.00
300
1,010.00
500
200.00
2,228
50
100
250
200
13,777.92
23,758.08
37,536.00
37,536.00
Jul-14
970.08
339.53
630.55
-3,908.16
65,319.84
22,788.00
6,000
3,200.00
750
9,950.00
8,000.00
300
1,010.00
500
200.00
2,228
50
100
250
200
13,777.92
23,758.08
37,536.00
37,536.00
Aug-14
970.08
339.53
630.55
-3,277.61
65,950.39
22,788.00
6,000
3,200.00
750
9,950.00
8,000.00
300
1,010.00
500
200.00
2,228
50
100
250
200
13,777.92
23,758.08
37,536.00
37,536.00
Sep-14
870.08
304.53
565.55
-2,712.06
66,515.94
22,888.00
6,000
3,200.00
750
9,950.00
8,000.00
300
1,010.00
500
200.00
2,228
50
200
250
200
13,777.92
23,758.08
37,536.00
37,536.00
Oct-14
4,522.60
1,582.91
2,939.69
227.63
69,455.63
27,158.00
9,000
3,200.00
750
12,950.00
8,000.00
300
1,010.00
700
200.00
2,948
50
300
500
200
18,095.40
31,680.60
49,776.00
49,776.00
Nov-14
4,422.58
1,547.90
2,874.68
3,102.31
72,330.31
27,258.00
9,000
3,200.00
750
12,950.00
8,000.00
300
1,010.00
700
200.00
2,948
50
400
500
200
18,095.42
31,680.58
49,776.00
49,776.00
Dec-14
2. Projected Cash Flow for the First Year
Cash Flow
2014
Net Income
Wells Fargo Line of Credit
Owners Paid-In Cpaital
Investors Paid-In Capital
3,102.31
75,000.00
30,000.00
15,000.00
Net Cash at the End of the 12-Month Period
123,102.31
3. Projected Cash Flow by Month for the First Year
Jan-14
Cash Flow
Net Income (Per Month)
-4,686.40
Wells Fargo Line of Credit
Owners Paid-in Capital
Net Cash at the End of the 12 Month Period
Feb-14
Mar-14
Apr-14
May-14
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Nov-14
Dec-14
Total 2014
-1,376.40
-676.40
394.94
544.44
630.55
630.55
630.55
630.55
565.55
2,939.69
2,874.68
3,102.31
75,000.00
30,000.00
108,102.31
4. Projected Balance Sheet, End of First Year
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5. Projected Three-Year Plan
Total 2014
Total 2015
Total 2016
Sales
Revenue
Total Revenue
438,192.00
438,192.00
482,011.20
482,011.20
530,212.32
530,212.32
Cost of Goods Sold
Gross Profit
161,024.42
277,167.58
177,126.86
304,884.34
194,839.55
335,372.77
Expenses
Rent and Utilities
Insurance
Loans and Interest
Marketing
Technology
Beauty Supplies
Office Supplies
Salon Decoration
Miscellaneous
Emergency Fund
96,000.00
3,600.00
12,120.00
7,100.00
4,200.00
26,796.00
1,500.00
3,150.00
4,500.00
2,400.00
105,600.00
3,960.00
13,332.00
7,810.00
4,620.00
29,475.60
1,650.00
3,465.00
4,950.00
2,640.00
116,160.00
4,356.00
14,665.20
8,591.00
5,082.00
32,423.16
1,815.00
3,811.50
5,445.00
2,904.00
Payroll Expenses
Owners
Full-Time
Part-Time
Total Payroll
60,000.00
38,400.00
9,000.00
107,400.00
66,000.00
42,240.00
$9,900.00
118,140.00
72,600.00
46,464.00
$10,890.00
129,954.00
Total Expenses
268,766.00
295,642.60
325,206.86
Operating Income
Taxes
Income Tax (35%)
Net Income (Per Month)
Sum of Net Incomes
Earnings in Account
8,401.58
5,299.27
3,102.31
-45,908.36
72,330.31
9,241.74
3,234.61
6,007.13
-39,901.23
78,337.44
10,165.91
3,558.07
6,607.84
-33,293.39
84,945.28
B. Proposed Plan to Meet Capital Needs
1. Repayment Plans
When inquiring a $75,000 loan from Wells Fargo, we are prepared to pay an 8% interest
rate, which is the current standard rate for most loans. Our plan of action for paying back the loan
19
is to pay $1,010 (including interest) per month. The loan will be completely paid off in a little over
5 years.
2. Plan to Repay Borrowed Funds of Provide Return on Investment to Equity Funds
Our parents have loaned us $5,000 each from personal savings, but do not expect to have
any say in everyday operations. We will split the income made within the first five years, to pay
back Wells Fargo and the $5,000 loan from each parent. Since Anna and Claire have both worked
at previous salons, an unexpected anonymous $10,000 donation was received to open up the
salon. With the estimated revenue Belle aime Salon and Spa will be obtaining within the first
five fives, our loans will all be paid off within that time span.
VI. CONCLUSION
The opportunities creating Belle aime Salon and Spa are endless. We have great
confidence in the success of our business. With determination, knowledge, and hard work we will
produce a recognizable salon to our local customers and competitors. The Salon will be located at
17592 Dodd Boulevard in Lakeville, Minnesota. This location will provide excellent traffic visibly
resulting in high profit margins. Our large target market, and donation services will support Belle
aime Salon and Spa to stand out from our competitors. Direct competitors will not be a worry to
our company, and we will confidently anticipate Wells Fargo w ill be as excited to invest in our
superb business, as we are to open it.
Belle aime Salon and Spa is
requesting a loan from Wells Fargo Bank of
$75,000. This amount, along with our individual
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and parental contributions will total $120,000. This figure will sustain start-up costs as well as
an emergency fund of $200 per month to cover unexpected costs over the first two years.
After we establish Belle aime Salon and Spa we wish to expand into more locations
around the metro area. The expansion of our business will increase revenue, expand
opportunities, and bring in more clientele. We believe this idea will separate Belle aime
Salon and Spa from competitors around the area because our expansion will be known
around the area.
The three step marketing strategy we have strategically planned will contribute major
success to Belle aime Salon and Spa. By providing loyalty programs, free advertisement
through social media networks, and the simple strategy by word of mouth, we will create an
atmosphere in our company that is known to many customers.
“Opportunity is missed by most people
because it is dressed in overalls and looks like work.”
Thomas Edison
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VII. BIBLIOGRAPHY
Cashier Live. (2013). Top 5 Challenges of Owning a Beauty Salon. Retrieved
October 6, 2013, from http://www.cashierlive.com/top-5-challenges-of-owning-abeauty-salon
Yeung, C. 97 Ways to Market Your Hair Salon. Retrieved October 6, 2013,
from http://www.hairsalonmarketingtips.com/97ways/index1.html
Organic Salon Systems. (2012). 8 New Rules to Make Millions in a Salon
Business. Retrieved October 6, 2013, from
http://www.organiccolorsystems.com/how-to-make-millions-in-a-salon-business/
Durant, K. (2013). The Target Market in the Salon Industry. Retrieved
October 6, 2013, from http://smallbusiness.chron.com/target-market-salonindustry-21637.html
Alexander, L. (2011, April 1). Designed for Emotional Buying Behavior.
Retrieved October 6, 2013, from http://www.salontoday.com/blogs/guest/leonalexander/designed_for_emotional_buying_behavior_125307823.html
Yelp. (2013). Hair Salons Edina, MN. Retrieved October 6, 2013, from
http://www.yelp.com/search?cflt=hair&find_loc=Edina%2C+MN
Laura, Wood (2013) Retrieved October 7th, 2013 from
http://www.businesswire.com/news/home/20130426005311/en/ResearchMarkets-2013-U.S.-Beauty-Salons-Industry-Industry
Professional Consultants & Resources (2013) Industry Leading Salon Data,
Market Dynamics and Trends Studies Retrieved October 7th, 2013 from
http://www.proconsultants.us/reports-Beauty-Salon-Spa-and-CosmeticsIndustry.html
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VIII. APPENDIX
A. Salon Survey
Q1
1. How old are you?
18 years old and under
19-39 years old
40+ years old
Q2
2. What is the best way to advertise a salon?
Social Media
News Paper
Billboards/Posters
Other (please specify)
Q3
3. How frequently do you visit a salon?
More than once a month
Once a month
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Every other month
A. Salon Survey
Every 6 months
Once a year
Q4
4. What time of day works best for your salon visit?
Morning
Afternoon
Evening
Q5
5. What do you find most frustrating when visiting a salon?
Q6
6. What services do you take advantage of the most at a salon?
Haircut
Hair Color
Nails
Massages
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Waxing
A. Salon Survey
Q7
7. Do you think iPads would be a nice feature to your
experience at the salon?
Yes
No
Q8
8. Would you utilize online appointment booking?
Yes
No
Q9
9. How much do you spend per visit at your current salon?
Under $50
Between $50 and $80
Between $80 and $100
$100
Q10
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10. What is your favorite thing about salons you have
visited in the past?
B. Interview of Salon Owner- Lori Barum
1. What are your main ways to advertise?
-Charity donations, demand force
2. How do you differentiate your salon from competitors?
-Good service, quality technicians
3. Biggest pain points?
-Personalities
4. Marketing Strategies?
-None- I keep trying different things
5. How many employees do you have? Any specific reasons why that
number?
-14- nope
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6. Annual Revenue?
B. Interview
-350,000
7. What service brings in the most revenue?
-Hair color/ foils
8. What is one thing you would have done differently when starting up
the salon that you know now?
-I wouldn’t waste money on most advertising
9. What do you find most difficult to keep up with at the salon?
-Cleaning
10. About how much did it cost to start up the salon? Was there a big
loan?
-Yes a big loan, I don’t know how much I wasn’t here, but the balance was
$120,000 when I came on.
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11. How many years did it take you to pay off loans?
B. Interview
- Not yet
12. What is your advice for newcomers?
-Keep it simple- start small and expand as you need more space
13. What hours of the day appear to be the busiest?
-4-9
14. Did you have a partnership, or did you start the salon business on
your own?
-Partnership
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C. Focus Group Questions
1. What is highest rate you would pay for a haircut?
Jane: around $50
Chris: depends where im going, but usually around $60 with tip
Heidi: I pay $70 for mine
Nick: for sure under $30
2. Do you think iPads in a salon would be useful?
Jane: For sure, I would love to be able to get work done during my
appointments
Chris: Depends if I had something to take care of online, but I enjoy my
relaxing time away from work
Heidi: Yes I would get all of my online shopping done
Nick: It would be nice to get done some of my busy work online
3. Since you live in the area what do you think about putting a salon
on the corner of Dodd Blvd. and Cedar Ave.?
Jane: Yes I believe that will be a booming area in the next couple of years
Chris: Yes, I always find myself going that way to get errands done
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Heidi: Yes I drive past there everyday going to and from work, so it
would be easy to go before getting home
Nick: Yeah it has good visibility
4. How often do you visit a salon?
Jane: Once a month
Chris: About every 6 weeks
Heidi: Every 5-6 weeks
Nick: Whenever my hair feels too long
5. What are some salon expectations?
Jane: Welcoming, clean environment
Chris: Relaxing and friendly
Heidi: Clean and professional
Nick: Quick service- I like to get in and out
6. What service do you take advantage of the most?
Jane: Wax services and Hair coloring
Chris: Haircuts and every once in a while a pedicure
Heidi: Massages are my favorite
Nick: Haircuts
7. What is your ideal size of a salon?
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Jane: Not too big where I feel overwhelmed
Chris: Ideal would be not too big because it’s a time for me to relax and
noise is bothersome
Heidi: I’ve has my best experience at a big well known salon
Nick: Just as long as I get a decent haircut I don’t mind size
8. What way of advertising is most effective?
Jane: Any online advertisements because I work on the computer all day
Chris: Word of mouth
Heidi: Social Media, preferably with promotions
Nick: Social media for sure
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