mission to bring the traditions of the iconic barber shop into the the culture of the modern man. We all ... This business is a great investment because we believe that we are on ..... them in with a smile, a game plan, and a beverage in hand.
Executive Summary………………………………………………………………………………………………….. 1
Business Description …………………………………………………..…………………………………………… 2
Marketing …………………………………………………………….……………….……………………………..… 4 Analysis Strategy Growth
Research, Design, and Development………………………………....……………………………………...… 11
Manufacturing …………………………………………………………………….………………………………….. 13 Location Equipment
Organization ……………………………………………………………………………………..……………..…..… 16 Our team
Critical Risks ………………………..…………………………………………………….………………………..... 21
Financial ……………………………………………………………………..………………….….…………………. 23
Milestone Schedule …………………………………………………………….….………………………………... 24
Appendix …………………………………………………………………………………………………..…….......... 25
Barber shops around the United States are known for their traditional and nostalgic atmosphere. From the barbers, to the cuts, to the shoeshines, every man has a vision of what the perfect barber shop is. At The Rustic Barrel, we make it our mission to bring the traditions of the iconic barber shop into the the culture of the modern man. We all know the competition: SuperCuts, GreatClips, and of course, your mother’s hairstylist, Kathy or Susan, who only converses about the latest gossip. We have seen many complaints pertaining to our competitors:
“The barbers are impersonal.” filthy.” “The shop is
“I could not get a straight razor shave.” “There’s always a line and the app does not work.”
“It’s just so generic.”
The Rustic Barrel Solution We are here to create a barber experience unlike any other in town. More and more men are focusing on their outwardly appearance and this is where we have built in a niche, whether it be a sharp cut, a clean razor shave, coloring, or nail maintenance, we at The Rustic Barrel have you covered. Our app will allow you to book your appointment, include all of your services, and let you pay before hand. On top of satisfying all of your grooming needs, let one of our Barrel Babes offer you a selection of beer, whiskey, and cigars to keep you relaxed and coming back for more. The Rustic Barrel is working diligently to build a reputation on exceptional customer service, uniqueness, and a good time.
Is It Worth the Risk? Absolutely! The Rustic Barrel is being created for a niche market, and it is our job to pull our target audience in through heavy advertising, promotions, and word of mouth. This business is a great investment because we believe that we are on the cusp of something great and long-lasting. We will work hard to ensure our clients are happy and keep them coming back. The Rustic Barrel will require minimal investment capital of $125,000 with our Administration acting as shareholders invested in The Rustic Barrel who will gain 100% back on investment within five years.
Where it all started... In society today, men and women are taking great strides to better their health, wellness, and overall appearance. While hair salons and nail salons are present in every city in the United States, the general target market is women. What sparked the owner, Robyn Parten, to come up with the idea of The Rustic Barrel was when she was at a nail salon and the Baylor High School football coach sat down next to her with much discomfort. Men now have a place to go where the target market is the modernized man and a masculine environment is present.
Where the girls are pretty, the cuts are sharp, and the beer is ice cold...
Our highly skilled and professionally trained barbers, “The Barrel Babes,” will attend regular training and hair shows to maintain their men's styling expertise, which runs from barber style cuts to straight razor shaves as well as manicures and pedicures. To enhance the experience, our barbers will serve two specialty draft beers from a local microbrewery, Chattanooga Brewing Co. The beer will always be on tap and rotate monthly, along with a fully stocked whiskey and scotch bar that will surely keep regulars relaxed and coming back for more. In addition to cold brews, our expert cigar rollers will roll custom cigars with fresh flavors to enhance and compliment the taste of tobacco. While our girls grab you your beer or whiskey of your choice, you may indulge in some simple pleasures such as: our personal televisions at every station, oversized chairs, or our outdoor cigar lounge.
Welcome to The Rustic Barrel
Old Tradition with a Modern Edge Modernized men no longer have to feel “out of place” in a women's salon or “short-serviced” in a barber shop. Now there is a place just for you. A place where relaxation is key, you can enjoy a complimentary beverage (including beer and whiskey), read an interesting men's magazine, watch ESPN, smoke a freshly rolled cigar or just shoot the breeze.
Best of all, you can enjoy the best men’s haircuts and grooming services around that will make you feel like a true gentleman. We provide services that go beyond haircuts for men, all performed in an environment that provokes relaxation and comfort.
Value Proposition Our value proposition is that we will bring a unique mode of relaxation and fulfillment to the discerning gentleman. Our services are unlike any of our competitors in that we cater to a specific niche market of the professional male. When people are relaxed, comfortable, and happy they have the ability to work harder, concentrate, feel physically, emotionally, and mentally balanced, and give that happiness back into their homes, workplace, and community. With all of these factors in mind, this differentiates The Rustic Barrel and places us highly in the mind of our target market, while also maximizing our brand equity. Simply put, our value proposition is that we help our community become a better place to live and work.
Market Analysis Summary The Rustic Barrel will focus on the professional male. An Internet study revealed that 85% of professional men had personal hair grooming services performed during the workday. The space near the Southside area apart of Downtown Chattanooga fits the demographics for our business. Applied Geographic Solutions estimates that 90,000 people live within a five-mile radius of our facility and 120,000 work there.
Market Segmentation Our target market will be barber shop services for the professional male. Based on our Internet survey, 70% of our services will be associated with hair, hair color, shaves, shoe shine; 15% will come from nail services; 10% will come from professionally developed portraits; and 5% will come from products. Thus, our target market will be male professionals and retirees, from the age of 22-64, with individual and household incomes greater than $37,000.
Target Market Segment Strategy The members of these market segments have luxury money on hand, and lead professional lives filled with very busy schedules. All persons usually need hairstyling regardless of income level, and make the effort to find money available to style their "look."
Market Trends In spite of the massive growth in residential, corporate complexes and substantial employment within 7 miles of The Downtown area, a gap currently exists in the retail trade and entertainment area. Our desired venue is strategically located in “the up and coming” Southside of Chattanooga. Our service will be located within three blocks of Downtown Chattanooga, which provides a huge competitive advantage. A population of nearly 174,000 people consisting of young, upper-class families with an average household income of $80,247 exists within a seven-mile radius of the downtown. The immediate areas surrounding Southside has upcoming demographics as well, with an average household income of $82,423 within a three-mile radius. It is also important to note that many companies have already located their corporate headquarters in the Downtown Chattanooga vicinity, not just administrative offices. Another plus is that several office buildings, hotels and high-end apartment complexes are located within a short drive/walk of our gentleman's shop.
Market Growth Our gentleman's shop's trade area's best growth potential is in terms of daytime employment. The total daytime business population in a three-mile radius is 43,000 with the residential population at 60,000. The total daytime business population in a five-mile radius is 109,867 with the residential population at 161,848. More predictable source of daytime employment growth is the planned expansion of existing companies. The Rustic Barrel is the only gentleman's shop exclusively for men in the Downtown Chattanooga area. The future looks very promising for a thriving business with a continual presence of clients.
Market Needs The traditional barbershop of years past has been replaced by unisex salons and spas, which focus mainly on women. Professional men are more health and style conscious, especially those who have achieved a modicum level of professional success. These men are willing pay for products and services that are geared specifically toward them. They are looking for an environment that consistently offers quality service, products and camaraderie. They look for a gathering place where they can openly discuss politics, watch sports or stock market news on TV, read the newspaper, network, get a cup of gourmet coffee, smoke a freshly rolled cigar, and get a shoe shine. The surrounding area of Southside and Downtown Chattanooga has become a bastion for the successful, having consistently been the fastest growing areas in our state. This has created a community of growth that demands new needs and wants.
Service Business Analysis We are part of the retail health and beauty industry, which has four major types: 1.
Salons: Stores with only hair styling services and products.
Day Spas Stores specializing in body health maintenance through a variety of services and products.
Day Spa & Salon: Stores combining the services of the two aforementioned.
Health & Beauty Products: Stores selling only merchandise product covering the wide range of products available but not inclusive of those sold by salons and spas.
The service industry is beginning to realize that the traditional barbershop needs to be added to their list of major types. The European market has catered to men since their first barber shop in 1805. The traditional barber shop in Europe is starting to expand its services to include massage, facials, manicures and pedicures based on the suggestions of the "progressive gentleman.” High standards of grooming has always been a tradition in Europe. U.S. professionals who travel abroad have experienced these services and are looking for similar services here in the U.S.
Main Competitors The main competitors are the local barber shops including: Supercuts, Great Clips, Nico’s Salon, and Hair-A-Go-Go located across town. Their strengths include competitive prices and hours of operation. The weaknesses of these competitors are their limited number of services. The Rustic Barrel has dedicated our services specifically to male clients offering hair grooming, shaves, shoe shines, live sports entertainment, cigar rolling and alcohol. All of the previously stated competitors are catering more to the female service industry rather than focusing solely on the male demographic. The Rustic Barrel has a market advantage that is wide open, and will give us the opportunity to service a large population base of professional males that is not currently being well-served.
Competitive Edge Our competitive edge is a combination of our unique services, outstanding location, and our interaction with our clients. By providing our clients a gentleman's club atmosphere and world class service, we build relationships of trust and satisfaction. Our clients will begin to depend on our unique services and fulfilling environment.
Strategy and Implementation Summary 1.
Emphasize quality, originality, and "World Class Service." We will differentiate ourselves from our competitors by offering a staff of practitioners who are not only certified in their professions, but will be trained in understanding the dynamics of customer service. This will maximize the connection to their clients and more easily meet their clients expectations.
Provide a unique atmosphere. From our professional staff to our ambience of our barber shop, The Rustic Barrel will distinguish itself as a completely trustworthy and soothing setting where clients can enjoy being pampered, escape the stress of their everyday lives and enjoy the camaraderie of friends and colleagues.
Build a community/corporate relationship-oriented business. We will focus on strengthening the trust of our customer base, and providing not only services, but information that will aid everyone in the progression of obtaining a balanced and healthy lifestyle.
Marketing Strategy Our marketing strategy is the key to our success: ● ● ●
Emphasize our brand, unique services, and manly environment. Focus on the convenience of our location. Build community relationships and corporate relationships through unique and quality service, a friendly caring atmosphere, and delivering world class service.
We will accomplish our marketing and promotions through a variety of popular mediums to reach our target market. Digitally, this includes the utilization of social media (Facebook, Twitter, Instagram), email marketing, Google AdWords, and search engine optimization for our website. Via print, we will send out postcards and mailings to our business and community neighbors. Some of our promotions will include social media contests and various seasonal and monthly special events.
Offerance of Special Events At The Rustic Barrel we will have special events to introduce existing clients and new clients to unique experiences within our shop. Examples include: ●
Father and son cuts for father’s day, accompanied with activities for the children.
Christmas gift card specials: 20% off purchase of gift card
Fraternity Composite Day: For a special price come and have your cuts and shaves as well as composite photos done here with your Barrel Babes.
No Shave November: Come in with your lengthy beard on December 1st and receive a half off beard trim or shave
Business of the Month: When we select your local Chattanooga business, you and your coworkers can come in and enjoy 10% off services
Military Mondays: With presentation of your military ID on the first monday of every month you will receive a brew on us as well as 10% of services
Administration Research The Rustic Barrel offers a specific type of service that is within a niche market. It is critical that our administration researches our target audience to understand their likes, dislikes, and what draws our target audience into different establishments. We surveyed our potential clients through questionnaires about their favorite music, alcoholic beverages, and hangout spots in the Chattanooga area so that we can evolve our business model and design it to fit the likes of our clients. The owner of The Rustic Barrel also collected some free research from online ratings from our competition to find what consumers in the area disliked about the other facilities, this way we can work to make The Rustic Barrel better. The Rustic Barrel administrators hand select the barbers based on extensive interviews, skill level, and problem solving exercises to retain the most exceptional staff that possess unsurpassed customer service skills. Our staff is the face of our company but our shop holds major weight in the overall Rustic Barrel experience.
Design One of the major factors that will entice our target audience, the modernized man, to The Rustic Barrel is our design; the exposed brick walls, dark hardwood floors, extended bar, oversized furniture, and overall rustic feeling are what distinguishes us from the competition. Not only is the atmosphere comfortable for our clientele, but it is our mission to provide a genuinely unique and superior experience to every person who walks through our door. In order to do so, The Rustic Barrel has multiple female barbers, a.k.a. Barrel Babes, ready to attend to your grooming needs. In addition to exceptional service, every client is offered a two drink maximum, choice of beer or whiskey to relax easy. The cost of alcohol is included in our most common grooming packages.
Continued Research & Development
The Rustic Barrel has worked hard to provide as much convenience as possible for our clients, so we will accept walk-ins as frequently and quickly as possible, but who would not be okay with waiting a few moments while enjoying a cold beer or choice whiskey? Another way we will add convenience to our business model is through our free app. The Rustic Barrel app will allow our clients to research our services, book appointments, choose a beverage, give our staff feedback and ratings, and pay for their services before they even walk through our door. This helps our barbers prepare for our guests ahead of time so that we can welcome them in with a smile, a game plan, and a beverage in hand. We expect the cost of our app to be $25,000 with quarterly maintenance to ensure our quality of standards.
We are always working to find new and innovative ideas to keep our clients happy and coming back. Though we do not anticipate our business model to change very much in the next few years, we are always searching for what we can do differently but more importantly, what we as The Rustic Barrel team can improve. In the first six months to a year of operation, we will welcome suggestions and comments from our clients to improve our services. We will also implement a customer service survey on our app for a discount or complimentary beer at the customers next appointment. This will help us to keep our customers happy by meeting their needs and providing a one-of-a-kind experience.
Location The Rustic Barrel will be located in Chattanooga, Tennessee in the trendy south side area near the heart of downtown. As the Southside of Market Street continues to grow, this retail location will be a good fit for The Rustic Barrel. Chattanooga, Tennessee does not currently have a “luxurious barber shop” for males, so this market has not been entered yet. This is an excellent location for offices, retail, or medical services. The traffic count is excellent as well as visibility of many restaurants and corporate gatherings.
Needs for Production Rental rates for The Rustic Barrel will be $1,600 a month for 1,900 square feet of space. The rental space does not have its own parking, but the complex as whole has a parking lot for their customers. The Rustic Barrel will be located three blocks from corporate downtown. The needs for production will have five styling booths each including a luxury barber chair, hair dryer, and mirror along with all of the other tools used by our master barbers. The shaving aspect of The Rustic Barrel will take place at the styling booths as well. Five sinks will be in the back area of The Rustic Barrel for shampooing and conditioning. There will be two foot-spas for pedicures and two nail stations for manicures. A friendly staff member will be at the front desk of The Rustic Barrel to greet the customers, answer the phone, schedule appointments, etc. Our service does not provide transportation as the clients can come and go as they please to get a haircut, nail groom, shave, etc.
Suppliers Our main supplier for hair products is going to AB Salon Equipment. The Chattanooga Brewing Company will be the beer supplier, and Chattanooga Whiskey will be the provider for liquor. We want to support local businesses in the Chattanooga area and by keeping everything local we hope to bring in more business.
Staff/Steps to Produce Service There are nine people on staff: five executives and four barbers. If needed, we will hire individuals as The Rustic Barrel grows. The steps required to produce our service will be: marketing, hair, shaves, nails, bar, cigar rollers, and great customer service. For the marketing aspect of the company we will use consistent design elements and advertising including a few special promotional events throughout the year. The professional barbers will be able to cut and style the hair according to what the customer wants. The shaves will include traditional straight razor shaves with hot towels to make this service more relaxing. The Rustic Barrel will also offer manicures and pedicures so everyone will leave with nice and clean hands and feet. Another service that will be offered is cigar rolling and a bar serving alcohol.
The Rustic Team is a very diverse and talented group of individuals. With a manifold of experiences, each member brings significant value to the company. The Rustic Barrel requires nine employees in the beginning stages. This includes our Owner and Operator, Executive Marketing Director, Executive of Administration, Creative Director, General Contractor, and three full-time barbers Each member of the founding team, except for our General Contractor, will also be part-time barbers.
A strong and talented team of entrepreneurs is essential for the success of The Rustic Barrel. Fortunately, our team brings a diverse set of talents and skills to the business venture.
Robyn Parten | Owner Operator: Robyn is the Owner and Operator of The Rustic Barrel. As
the lead barber she manages our staff, plans events, and provides outstanding customer service to our clients. She has over seven years of experience in managing high-traffic and high-volume store locations across Tennessee. The invaluable skill set in management that Robyn brings to the team creates outstanding employee relationships. She focuses on retaining female barbers with an unbeatable turnover rate by providing excellent benefits and an enjoyable working environment.
Jessie Philpott | Executive Marketing Director: Jessie is the ever so cunning and
strategic Executive Marketing Director of The Rustic Barrel. She creates and develops partnerships with local businesses as well as uses integrated marketing communications to reach maximum exposure for The Rustic Barrel. Her experience with the marketing of numerous local entertainment venues throughout the Chattanooga area provides priceless value for the company.
Claire Wickenden | Creative Director: As the Creative Director, Claire designs The
Rustic Barrel promotional material, website, and social media content. She also manages advertising campaigns through online mediums. With a proficiency in eCommerce, she develops and manages the online appointment booking and payment system as well as online event registration. In addition, she captures the essence of The Rustic Barrel atmosphere through photography of special events and everyday appointments.
Hillary Hewitt | Executive of Administration: Hillary is our Executive of
Administration. She keeps the books for The Rustic Barrel and provides us with our monthly financial statements as well as our invoices from our distributors. With her strong background in business development, Hillary also performs marketing research to provide direction for pursuing future growth opportunities.
Brent Gauthier | General Contractor: Brent is a true asset to the Rustic team as he helps
us create the quintessential masculine atmosphere. His nickname is the “dude guru” and suitably so. Both a cigar enthusiast and sports fanatic, Brent’s experience in sports management and entertainment brings excellent value to The Rustic Barrel team. His expertise allows us to provide our clients with a satisfying and unforgettable experience.
Rustic Barbers and Bartender Babes We have carefully selected a team of talented barbers with varying niche personalities to perfectly suit our clientele. Rustic men now have the opportunity to enjoy their styling session with women who can hold enjoyable conversations involving similar interests. Each female barber not only tends to the gentlemen’s grooming needs but also serves alcohol and cigars during their appointment session.
Stephanie Scates: Stephanie is your go-to girl for all things football. She’s a die hard Vols fan, but you’ll catch
her watching every game on the screen. She always has a team to root for and can tell you every last detail about the star players. Our clients who are big into sports love booking appointments with Stephanie.
Melanie Fordham: Spoiler alert! If there’s an expert on the all latest shows, it’s this girl. Our Walking Dead and Breaking Bad television show fanatic, clients love to schedule appointments with Melanie. Her sarcasm and witty humor is just the cherry on top. She’s a Rustic Barrel favorite.
Haley Jenkins: Haley is your ultimate hipster, dog-lover, outdoorsy homebody. Born and raised in Chattanooga, she knows all about our city from the best hole-in-the-wall eateries to the best kept secret hiking spots. Chat with our energetic Haley for five minutes and she’ll have you feigning for an exciting local adventure. Our outdoorsy clientele loves their appointments with Haley.
Salary and Wages Our team of full-time barbers will not be on salary, but will receive an hourly rate at $10.95 from each client’s appointment payment. In addition, all tips will go to the respective barber. They will receive a two weeks of paid vacation per year and bonuses will be given based on yearly performance. Other benefits include monthly all-expenses-paid outings. Whether it’s an employee dinner or a weekend trip to Asheville, we make sure to keep our turnover rate low by letting our employees know they’re appreciated. With a shop full of women, it’s important to keep drama and tension to a minimum. By making The Rustic Barrel an enjoyable place to work, there will be less stress and more fun. It’s beneficial for both our employees and our clientele. Our founding team members will be salary based. All paychecks will be delivered bi-weekly. Below is a list of each member’s salary: Owner Operator: $3,000 monthly Executive Marketing Director: $2,200 monthly Executive of Administration: $2,200 monthly Creative Director: $2,200 monthly General Contractor: $2,200 monthly We as executives will take a cut in salary until The Rustic Barrel is profitable. As for benefits, our founding team will receive health insurance and dental/vision care. Each member will also receive two weeks paid vacation per year. In addition, management and barbers will receive holiday pay including Christmas, New Year’s, Easter, Labor Day, and other major holidays.
Specialist Usage In the beginning stages of The Rustic Barrel, we will need specialists to help us execute our business plan. Since facial grooming is not a commonly-held skill, we will need a specialist to train our female barbers how to properly perform straight razor shaves, moustache grooming, and beard grooming.
The Rustic Barrel, LLC The legal form of ownership for The Rustic Barrel is a Limited Liability Company. This is the best-suited form due to it’s taxation of a partnership and limited liability of a corporation. It’s important for The Rustic Barrel to have this form of liability protection due to
Licenses and Permits Our staff of barbers will be required to hold up-to-date cosmetology licenses. In addition, the Barrel will require an alcohol permit to sell beer and whiskey. Our barbers will all need to be individually licensed to serve our selection of alcoholic beverages.
Worth the Risk? We understand that there could be some risks in starting The Rustic Barrel, but what new business doesn’t? The critical risks found that could be a potential problem for The Rustic Barrel include:
App Failure We will have a convenient app that will let The Rustic Barrel Clientele book appointments, prepay for their appointments, as well as a reminder one hour before their appointment to ensure that our customer does not lose out on the experience. In the beginning, we know we may have issues with the app, but with excellent technical support and a highly qualified receptionist we know we can handle the issues promptly. Solution: In the circumstance of app failure, we will accommodate our client with a discounted rate on their next service.
Misunderstood Concept We understand that some of our future clientele may be unsure of exactly what we do here at The Rustic Barrel, but with our excellent marketing strategy and the use of our social media advertising we will surely get out the word of our unique business. Solution: We will have a person who will strictly focus on our social media outlets such as: facebook, Instagram, google+, pinterest, blog, a Pandora station of The Rustic Barrel’s favorite music with our main focus being, twitter using our hashtag #BarrelBros
Alcohol Sales The Rustic Barrel is a place to relax and have a unique experience, but it is not a bar. We have to be extremely careful about the sale of alcohol, and keeping and renewing our permits with the Beer Board. Solution: In order to ensure our clients are having an enjoyable time and are safe The Rustic Barrel will have a two-drink maximum. Owner and General Manager, Robyn Parten, will be in charge of renewing any of our permits and maintaining our reputation with the Beer Board and the Better Business Bureau.
Market Size There have been questions raised about whether the market size is large enough in Chattanooga. We believe that The Rustic Barrel will serve a specific niche in the market. In recent years we have seen Chattanooga’s population grow at a rate of 2.15 percent per year and based on data found from the Chattanooga Times Free Press this city is no where near close to stopping. There is an evident shift in the dynamic of Chattanooga in that we are becoming more corporate. Volkswagen will add 40,000 new jobs, The University of Tennessee at Chattanooga is growing by the thousands, and more and more people are moving closer to the heart of Chattanooga, downtown. Solution: We will advertise in a way that reaches out to our target market. It is not that our market is not big enough, rather that we need to change the mindset of our consumers and make them realize that our niche is their niche.
Regulations The Board of Barbers and Cosmetology and the FDA have regulations that we need to keep in mind and follow to keep our reputation and our business. Solution: it is important that we are up-to-date with all regulations and have our regular inspections with the board. We will have station clean-up every night before close that the shift leader will sign off on, we will also have a cleaning service every two weeks to ensure that our studio is kept up to the highest standards.
Income Statement Continued The Rustic Barrel, LLC is seeking $125,000 in minimal investment capital with our four administrative board members acting as shareholders holding $15,000 worth of stock per shareholder and the owner, Robyn Parten owning $40,000 worth of stock. The Rustic Barrel administrators hold a total of $100,000 worth of stock and expect that with contribution from outside stockholders such as the brilliant, Richard Becherer, we will be able to cover all of our startup costs, app development, payment of wages, and form a healthy contingency budget. Our administration believes wholeheartedly that what we put into our business is what we will get out of it. In order to break-even before year one, we as a board have decided to take half salaries of $11,000 per month until The Rustic Barrel can sustain our normal wages while still turning a profit. This way we can pay each individual back their full investment within five short years. Our first year sales revenue $402,285 which is quite promising in our niche market; after all of our expenses for the first year The Rustic Barrel will break-even in August 2015. We will see a substantial growth of around 26% in the first year and continued steady growth in year 2 and beyond. The Rustic Barrel business model will continue to offer great returns as we evolve our model and as we expand to other markets like that of Atlanta, Charleston, and other growing markets within the next seven years.
Additional financial statements can be found in Appendix (pg. 25)
January 3, 2015
The Rustic Barrel launches
August 1, 2015 Breakeven
Hire two barbers
September 15, 2015
Product and Merch Launch
June 1, 2017
Launch franchise in Atlanta
Income Statement - Year 1 and Year 2
Income Statement - Year 1
Cash Flow Statement - Year 1
Annual Balance Sheet