Business Plan Updated Am Elite Hair Design

Business Plan

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This report contains my/our own work and has not been submitted, in whole or in part, towards fulfilling requirements in any other course, either at Conestoga College ITAL or elsewhere. I/We understand that plagiarism, whether intentional or unintentional, will be dealt with in accordance with college policy and practice.

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Executive SummaryOur business is asking you (TD Bank) for a $60,000 loan at 4% (Prime plus 1) that will be paid back monthly within the first year.

AmElite Hair Design is a unisex hair salon that will be operated in the heart of Waterloo, near the Blackberry Headquarters and within walking distance of two major local Universities. Our competitive advantage will be our ability to provide the latest hair styles/designs at an affordable price for both our primary and secondary target markets: University students and young to middle-aged business professionals. We will reach these individuals through an aggressive marketing/advertising strategy that no competitors in our area willbe able to match.

AmElite Hair Design owner and operator, Rita (Amrita) Culley, is a fifty year-old mother of two currently residing in Heidelberg, Ontario. Rita has ten years ofexperience as a licensed hairstylist and she is looking to expand her businessby moving locations. She is currently operating the salon out of her home approximately ten minutes from the subsequent location (Parkdale Plaza on Albert Street in Waterloo).

Rita will be bringing with her 80-100 existing clients ranging in age and gender (these clients are loyal and more than willing to travel to the new location). We strongly believe that this business expansion will be a great opportunity for her to further diversify and grow her clientele base. Operating out of her current location, Rita is making $25,000 a year in sales.These sales will increase dramatically when she switches to the new location.

We feel that a loan of $60,000 will serve to our best interest due to the factthat Rita will have many initial expenses (purchasing new materials, equipment, furniture, etc.) and sales will need some time to increase.

This loan will be paid off monthly. Rita will be able to pay this loan off with ease; she will continue to service her existing clients and attract new clients very quickly. Rita is putting $30,000 of her own into the business.

Based on our three year sales projections, we are expecting the sales for our first three years to be: $138, 444, $145, 366, and $155, 455, respectively.

AmElite Hair Design faces few liability risks and Rita already has an insurance plan that will cover her at the new location (Property, B/E, etc.) as well as

a contingency plan in case of illness. We are also an incorporated business, reducing our personal liability risks and benefiting on taxes.

Hairstyling/hair design is becoming more and more popular among both males andfemales. With the influence of media and popular culture, and in an area wherethere are many University students and young business professionals; we feel that AmElite Hair Design has the opportunity to capitalize on a large market with great potential through an aggressive marketing/advertising strategy targetingschools, school residences, and businesses in the area. Providing quality hairservice at an affordable price and having few competitors in the immediate area, Rita will surely have success.

AmElite Hair Design – Keeping You Elite

ContentsIntroduction...................................................1Company Overview...............................................2Industry Analysis..............................................3Competitive Analysis...........................................6Target Market..................................................7Marketing Plan................................................10Branding & Promotion.........................................10Pricing Strategy.............................................13

Operations/Human Resources....................................14Financial Summary.............................................20Financing....................................................20Initial Costs................................................20Breakeven Analysis...........................................20Sales Projections............................................20

Implementation/Timeline.......................................21Conclusion....................................................22

Order of Appendices...........................................23Appendix A...................................................24Appendix B...................................................25Appendix C – SME Benchmarking/In Dollars.....................26Appendix C – SME Benchmarking/Percentages....................28Appendix D – Competitor Matrix...............................30Appendix E...................................................31Quotation.....................................................31Appendix F...................................................32Price Index.....................................................32Appendix G...................................................33AmElite Hair Design - Policy Manual – Revised Edition (2013).....33Appendix H...................................................39Sample Job Posting...............................................39Appendix I...................................................40Layout/Floor Plan................................................40Appendix J...................................................41Loan Calculator.................................................41Appendix K – Financial Statements............................42Endnotes.....................................................43

Introduction As touched upon in our Executive Summary, AmElite Hair Design will bea unisex hair salon, located at Parkdale Plaza on Albert Street in North Waterloo.

We will offer our customers a variety of hair/grooming services including: haircuts, color treatments, facials, etc.; as well as some hair care products including: gels, shampoos, colors, etc. These services/products will be offered at very competitive prices and will be targeted towards University students (male andfemale) as well as young to middle aged business professionals inthe area.

Both the University of Waterloo and Wilfrid Laurier University campuses are within walking distance of our location, and Blackberry Headquarters is also in very close proximity as well. Our location is perhaps the most exciting aspect of this business.

Our competitive advantage is our ability to offer quality hair services at an affordable price to a massive target market of students and working professionals. Our ability to draw these individuals to our business will be achieved through a variety ofadvertising tools that will make up our aggressive marketing strategy/plan. No competitors in our immediate area will be able to match our marketing reach. Focusing on school residences in the area, we have the ability to reach our target market through a great deal of free advertising and promotion (that will be described, in detail, in our Marketing Plan section of this report).

With Rita Culley’s ten years of experience in the industry, an already established clientele base, and proven customer

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satisfaction, she will be bringing a great deal of experience and“know-how” to the table. The opportunity to expand her business to the subsequent location of Parkdale Plaza in Waterloo is enticing because of the opportunity she has to reach a relativelylarge and untapped market.

Expanding Rita’s current business entails a great deal of start-up/initial expenses (furniture, equipment, renovations, initial advertising, etc.), and therefore a loan of $60,000 will serve toour best interest. Rita will have no issues paying this loan off within the first year. (We will discuss repayment of this loan infurther detail in the Financials section of this report).

We will be focusing on providing our customers with the experience of high quality hair treatment, as opposed to just a service. They will feel like a movie star or fashion icon when they walk out of our salon, and for an affordable price.

Company OverviewOpportunity:

Rita Culley has a great opportunity to expand her business by moving to Parkdale Plaza in North Waterloo. The plaza is located on a busy intersection in an area where there are many family residences, student residences, and businesses.i (Refer to Appendix A – “Map of Location”) Our target market is University students and young working professionals. The fact that there aretwo major Universities in our area, as well as numerous businesses, makes this a very exciting opportunity for our salon.The hair salon services industry makes up roughly 50% of the personal services industry as a whole. It is an industry that continues to earn billions of dollars each year (even through therecession of 2008-2010, the industry did not decrease in terms of

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earnings).ii More information on our industry can be found in theIndustry Analysis section of this business plan.

Sustainable Competitive Advantage:

At AmElite Hair Design, we will ensure to keep up with the latest hairstyle/design trends. Any employees that Rita hires will be very knowledgeable about the industry and where it is at that certain point in time. Our competitive advantage will be achievedthrough rigorous marketing efforts and the general know-how of our staff. We will strive to create an experience for our customers that will go above and beyond what our competitors are able to offer.

Mission Statement:

AmElite Hair Design is committed to providing the best services toour customers. We strive to provide ongoing education to our customers about services, products, and changes in the beauty industry (styles, trends, colors, etc.). Our responsibility to our customers is to maintain a good reputation for quality services in our salon. We are committed to performing exceptionalservices while also providing our customers with unwavering and personalized support. At AmElite Hair Salon, we will not accept mediocrity. We are educated and passionate about our industry andwill uphold exceptional standards for quality and superiority in the industry.

Entrepreneur Background/Experience:

Our entrepreneur, Rita Culley, is bringing with her ten years of experience in the hair salon industry. As she already has an existing client base (80-100 people), she is also bringing provencustomer satisfaction and expertise to the table. The fact that she already has an established business (operating out of her home), will be crucial to her success at the subsequent location.(Please refer to Appendix B – “Entrepreneur”)

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2 Major Goals:

Pay off our loan within the first three years of operation Gain a substantial increase in market share by our second

year

Industry AnalysisOverview:

Hair Salons are mostly composed of small, independently owned salons. Typical salons offer services such as haircutting, styling, coloring, shampooing, and permanents. Some salons expandtheir business to include other services such as nail care, facials, and makeup application. According to the Annual Survey of Personal Services, firms providing services within Canada in 2005 have had rising revenues. These firms within the personal services industry earned $9.1 billion in that year, up from $8.5 billion in 2003 and $8 billion in 2003. Hair and aesthetic salonsand spas accounted for about 45% of the industry’s total earnings. These firms earned $4.1 billion in 2004, up from $3.9 billion in 2002.iii

Economic/Demographic Trends:

The entirety of the hair salon industry is affected by the economic conditions at that point in time. For example, in the early 90’s when the recession started, hairstylists and barbers dropped sharply reacting to the changing economy. In 2009, duringthe recession, it had a similar effect but to a lesser degree. From 2008 to 2009, the number of employment insurance claimants increased by 30% before stabilizing in 2011 returning to its 2008levels.iv The expected recovery from the recession will increase the number of jobs and has adverse impact on the industry. The

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next few years should increase in employment slightly dependent upon economic stimulus at that time.

Employment prospects in Toronto seem to be good for 2012-2013, there were nearly 14,000 hairstylists and barbers within Toronto region and surrounding areas, this was an increase of 10% from the 2006 census data.v There is a steady increase for hairstylists and barbers and the outlook is expected to increase provided the economy does well. With this increased demand, thereis a major drawback as more salons and barbershops want established barbers to work for them and to bring previous clientele with them. Employment prospects seem to best suited for those with a broad range of experience. The industry is sensitive to economic downturns; as disposable income decreases, individuals delay going to the barber, or use do-it-yourself products. Most hairstylists were aged 55 or over at the time of the 2006 census. This allows in greater employment opportunities being created as the turnover increases due to retirements.

A great opportunity provided to the hair salon is the location. Location is a primitive factor when conducting business within the personal services industry. The location of our hair salon is 502 Albert Street, Waterloo (Parkdale plaza). This location issurrounded by variety of other services and restaurants such as aPizza Pizza, Beer Store, and a grocery store. This location is ideal as it is encompassed around a local community location and the options of attracting more customers’ increases as it is surrounded by universities. One of the major opportunities, we have at our disposal is a market advertising agreement with a recent student housing apartment. The complex will hold roughly 300 students and this type of exposure can help capture a part ofthe student market within the area. There are currently five proposed student housing projects in development. Nearly 2,000 individual student rooms can be targeted through this contact.

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The obvious threat that the hair salon faces is competition. In total, there are 8 hair salons within 10 kilometers of the location. This poses a problem as the majority of Rita’s initial clientele will be from previous customers. The objective of gaining new clientele will prove to be difficult as the marketingtechniques with universities, corporate plans, and student discounts will be costly. In order to gain an attractive market share, investments need to be made to cater to the target marketsin the area. By using effective advertising, Rita would be able to obtain a significant amount of the area’s market share.

The hair salon is dependent upon the current economic status of Canada. Hair salons make the majority of their sales thorough disposable income from individuals. If the economy is not stable or inflation is high, sales will drop in this sector. The currenteconomic status is increasing steadily as the economy corrects itself.vi

Political Analysis:

The hair salon industry is regulated by the government in regardsto different employment laws.

Social Analysis:

Population growth within Canada is constantly increasing and hairtrends are constantly changing. This is heavily influenced thorough media, Hollywood, and music industries where youth are trying to achieve a look or image. The benefit of this within thehair industry is that customers are constantly trying to change their appearances to maintain originality. People are inherently accustomed to creating an original look for themselves whether it

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is from clothing, hair, or personality traits. The buying trends in Canada for hair products have always been predominately female, but in recent trend analysis, males are spending money onthese products as well. Part of this increase in expenditures on hair products can be attributed to media (such as the infamous axe commercials).

Technological Analysis:

Technology plays a huge factor in the hair salon industry; havingthe right software can allow customers to setup appointments or make payments at ease. One of the key aspects that Rita’s salon will have is a proprietary software which will allow the customerto experiments with select hair styles/highlights/colours and seeand end product. This software is beneficial as it allows for users to save money and seeing end results to satisfy their needs. Online booking will be setup via Rita’s website; where thecustomer can book appointments. Mobile applications for mobile booking will also be in future development.

SME Benchmarking Analysis:

According to the SME analysis, the majority of revenues made fromunisex hair salon ranges from $30,000 - $5,000,000. (Refer to Appendix C – “SME Benchmarking”)

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Competitive AnalysisHere is a basic breakdown of our immediate competition in the area. We have stated the salon name, location, and what we believe to be their key strength and weakness.

Competitor Location Key Strength Key WeaknessHead Kuarters 465 Phillip

StreetPortfolio for clients

Outdated design/layout

First Choice Haircutters

160 University Ave.

Large franchise (reputation)

Lack of intimate experience

Headspace 145 Columbia Street

Open 7 days a week

Relatively high prices

Hair Plus 170 University Ave.

Location (close to both Universities)

Closed on Sundays

BJ’s Hairstyling 150 University Ave.

Appeal to a target market of young men

Do not serve women

Head Kuarters may be our most significant competitor. They are located directly across the street from us on Phillip Street (adjacent to Albert Street). Head Kuarters offers a personal portfolio for their clients as well as discounts for men. They have an online website as well. However, the salon only has one or two employees and do not utilize a great deal of marketing. Wealso feel that we will have an advantage over them in terms of design and overall appearance or “look”.

First Choice Haircutters is a well-known hair salon franchise. They are a significant competitor for us as they are an established company and have a recognizable brand/reputation. They offer low prices and have a good location (on University Avenue). We will separate/differentiate ourselves from them by offering a more “intimate” experience for our customers. Because First Choice is a large franchise, their customers are simply in-

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and-out and are not too concerned about their overall salon experience. They simply want to get a quick cut, pay, and leave; First Choice is more of a walk-in salon. In addition to this, students and young professionals like to differentiate themselvesfrom the ‘norm’ or what is vastly popular. They traditionally prefer smaller, more independent/intimate salons. We will offer our target market exactly that.

Our other competitors include Headspace, Hair Plus, and BJ’s Hairstyling (for men). These are well-established hair salons that each cater to their own specific markets. All three of thesecompetitors have relatively high prices in comparison to AmElite. BJ’s is strictly for men; we already have an advantage over them in terms of our potential market share. Our salon’s offering of a10% discount to students will also benefit us over our competitors as our target market is mainly students and they willappreciate our budget-friendly price. Our free advertising through K-W4Rent will also be something that our competitors cannot match. This, and more, will be discussed in further detailin the Marketing section of this business plan. (For a full Competitor Matrix, please refer to Appendix D – “Competitive Matrix”)

Target MarketPrimary: Male and female University students

Approx. 60% of Total Target Market

Group M096 – Urban & Urbane

Demographics:

These individuals range from ages 18-30; they are single and common-law individuals living in the city. The majority of this demographic will be current University students and recent graduates with degrees (visual and cultural arts, communications,

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life sciences, etc.), that are trying to launch their careers. Being in this area, they are high users of public transit and commuting. Having our location in a high traffic area with bus routes, and within walking distance (max. 5km) of the two major Universities, this will be an ideal location to reach our target market. These individuals’ incomes are $10,000-$30,000; they tendto not have had children yet so their household expenditures are low.

Psychographics:

Their psychographics and purchasing characteristics will take theform of spending time and money on themselves. This involves spending on restaurant meals and simple luxuries such as personalcare products. Immigration is high in this group, bringing globalcultures from Latin America, Africa, South Asia, and the Middle East to their urban habitats, further refining their up-and-coming international and refined tastes. Dominant ethnicities include: Chinese, East Indian, Caucasian, and Eastern European. Because of the well-known Universities in the area, this segment will prove to be very important to the sales at AmElite Hair Design. Our hair salon will offer student discounts, so it will be budgetfriendly; great for those who would like to have a ‘chic’ hair treatment at an affordable price.

Secondary: Cosmo Canadians, Rooted in Canada, Single in the City

Approx. 40% of Total Target Market

C015/C017/C019/C022/C023 – Cosmo Canadiansvii:

Within 5km of the Albert Street location, these families typically spend approximately $600/year on hair grooming within their household and there are approximately 34,200 families in this area. This group consists of the ages 30-39 years old, with babies or young children living in a 4-5 person household. With amix of college and University educations in behavioural sciences,

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engineering, and business administrations fields, they are developing careers as managers, educators, professionals, or technical experts. Being young in their careers, incomes range from $50,000-$80,000 but have expenses of managing a home, clothing, health care, and vehicle maintenance. The home is the hub of activity so furnishing for comfort and style is well aboveaverage. Saving for children’s education and their own retirementis important; however their psychographic tendencies are to indulge in experiences like family vacations and attending live sporting events. This group has predominantly Northern and Eastern European backgrounds and their cultural attitudes are likely based on a Christian-based value system. These Cosmo Canadians are important to our hair salon because of their current financial position and their lifestyle of having luxuriessuch as high quality personal care services with a minimal cost associated with these purchases.

Group D026/D027/D028/D029/D031/D033 – Rooted in Canadaviii:

This segment of demographics involve large households in single detached houses which create the living spaces of these married couples 40-54 years of age and their teen aged children. Average yearly incomes range from $70,000-$100,000; likely from college educations infused with many years of work experience, as nurses,contractors in primary production or are engaged in the financialand insurance businesses. The home is their palace and they spendtime and money on maintenance, utilities, tending gardens and fixing their vehicles. They work diligently and play hard, indulging in recreational sports and likely to have a gym membership or belong to a professional or community association. Ensuring their lifestyle is secure for the future, their purchasecharacteristics include contributing to their pension plans and putting away funds for their children’s educations. This segment involves having a Northern European heritage and is synonymous with Christian values, and they don’t forget to give to

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international charities and organizations. This cluster of Canadians is rooted to their communities and look forward to reaping the fruits of their efforts well into their senior years.Having this segment of people in the local area will help sales due to the fact that experienced licensed hairstylists will be able to tend to their personal care needs and meet financial expectations for the family.

Group J073/J074/J076/J077 – Single in the Cityix:

This segment includes a wide variety of well-educated singles from ages 20-30 that rent and live independently in a high rise apartment/condominium. These individuals typically have graduate degrees in physical science, math, visual arts and culture, and are launching into the work force working in the service and sales or arts and culture sectors. As they are starting in entry level positions, incomes can be as low as $30,000 - $60,000 and expenditures are reflective of this with lower than average spending on clothing, furnishings, education, communication equipment and reading materials. They are high users of public transportation, bikes, and walking as their urban environments offer close proximity to services and amenities which our location offers within 1km walking distance. There is a high ethnic diversity, many of Northern and Eastern European, Japaneseand Mexican descent with a number of non-permanent residents, which adds a unique vibrancy to these communities. Although downtown single city life is satisfying their psychographic and purchasing characteristics are looking for value added purchases with low cost and high satisfaction. Being architects of their careers, they aspire to create families and craft a meaningful lifestyle and this will be important to the sales of our salon. These individuals value a sense of image and we will help them achieve their image at a very reasonable price.

Market Location (Characteristics)x:

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Address: 502 Albert Street – Parkdale Plaza, Waterloo, Ontario – N2L 3V4

Intersection: Bearinger Road/Hazel Street Average Annual Daily Traffic: 16,064 Approximately: 34,196 families within 5km of location Approximately: 25,810 full-time University/College

Studentsxi Parking Spaces (on-site): 200 Year Opened: 1968 Main-level entrance/Wheelchair accessible Anchor Tenants: Dollarama, Shoppers Drug Mart, The Beer

Store Other Tenants: Pizza Pizza, Coffee Time, Heffernan’s

Jewellery, Parkdale Pet Store, Office Buildings (Please refer to Appendix A – “Map of Location”)

Sales Projections:

Here are the sales projections for our first three years of operation:

Year 1 Year 2 Year 3$138, 444 $145, 643 $156, 143

These sales projections are discussed in further detail in the “Financial Summary” section of this business plan.

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Marketing PlanBranding & PromotionThe branding strategy that AmElite Hair Design uses will incorporate a variety of marketing tools at our disposal. We will set ourselves apart from the competition through an aggressive marketing campaign that will target University students and youngto middle aged business professionals. The ‘chic’ and ‘sexy’ image that we will be looking to achieve will be reflected in allof our marketing efforts. We are going to appeal to our target market and reach them through eye-catching marketing materials and the general appearance of our salon/personnel. Our target market values image so we will work hard to maintain our own image and appeal to theirs. We will utilize…

Company Logo:

As you can see, our logo has warm and appealing colours that willmatch the physical appearance of the salon itself (inside and out), as well as the personality of our staff. It is not complex and will be easy to read on business cards, signs, posters, and any other marketing materials we use. It will be displayed on allof our signage and will create a lasting impression of our brand to our current or potential customers.

Signage:

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AmElite Hair Design will have a great deal of signage. We will have aback-lit over our salon entrance to welcome incoming customers.For our grand opening, we will be using “Opening Soon” and “NowOpen” signs to draw customers towards our location (lawn signs).We will also be using a simple vehicle wrap on Rita’s white HondaCivic that will display our company logo and contact/locationinformation. This will ensure our brand reaches the highestnumber of potential customers possible. These signs will becrucial in gaining recognition for our business. Most of oursignage will be done through Speedpro Imaging.xii

Marketing/Promotional Materials:

Our salon will be distributing a high number of posters andflyers around school campuses, bus stops, bulletin boards atlocal business, etc. Most of this will be done in the opening twomonths of operation. It will be done through Active Marketing.xiii

Rita will be purchasing business cards that will displaycompany/location/contact information and she will have theopportunity to distribute them after servicing clients or whenattempting to gain potential new clients. Personal selling willbe something that Rita will strive to do as it will show that shehas a passion for what she does. We will have business cards madethrough St. Jacobs Printery.

We will be looking to expand our business’s recognition in theKitchener-Waterloo region; the KW Record will be used (fourprints in the first month)xiv. We will also look at opportunitiesto promote through school newspapers in the fall, highlightingany promotions we may have going on for students. Thesepublications could include The Cord (WLU Newsletter) and Imprint(University of Waterloo Newsletter).

In today’s world, technology plays a very important role in thedevelopment of a company’s brand. We will ensure that we are

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utilizing the internet/social media and networking tools at ourdisposal. AmElite Hair Design will have a Facebook page, TwitterAccount, and a Pinterest Account. As our primary target marketwill be students, we will ensure that they can ‘Like’ or ‘Tweet’us online through social media, and in turn, further expand ourbrand recognition. We will be using the Salon Iris softwareprogram for our salon’s official website. This will be providedby DaySmart Software, Inc. This software program will allow ourcustomers/potential customers to see our company/location/contactinformation, book appointments online, and see some of thepromotions that we have going on. In addition to this, thesoftware program also tracks inventory and day-to-daytransactions. (Refer to Appendix E – “Quotation”)

AmElite Hair Design will utilize promotional activities to show ourcustomers that we are willing to accommodate their budgets. AsUniversity students will be our target market, we will appeal tothem through a 10% student discount, which they will obtain uponshowing their student cards. We feel this will go a long way inretaining customers as they will save a significant amount ofmoney in the long run. We will also be offering bundle packageswhere customers will receive a 25% discount on all products thatthey purchase in combination with a hair treatment or service(haircut, colour treatment, etc.) Customers will have the abilityto “kill two birds with one stone”, so to speak, and save moneyon products that they would buy regardless of the service (gels,hairspray, shampoos, conditioners, etc.)

Free Advertising (K-W 4 Rent):

Our salon’s most exciting opportunity to advertise and promoteour business will be through K-W 4 Rent. K-W 4 Rent is a studenthousing development company that currently has a dozen buildingsin our immediate area (Albert Street, Lester Street, and ColumbiaStreet)xv. The company has almost 2,000 rooms to accommodatestudents and has a building going up directly across the street

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from our location. They have agreed to provide our salon withFREE advertising through their website as well as freedistribution of our flyers through their mailing service. Ourflyers will reach all students in these buildings with no cost.Because our target market is University students, this will be agreat way for us to reach them and notify them of our studentdiscounts. This is a company that will greatly benefit us andhelp to boost our sales.

Breakdown of Main Advertising Expenses:

Vehicle Wrap (Speedpro Imaging) $1,000.00 (one payment – July)xvi

5,000 Flyers (Active Marketing) $300.00 ($60/1000pcs – 6months)xvii

Back-lit Sign (Speedpro Imaging) $3,000.00 (one payment –July)xviii

Official Website (DaySmartSoftware, Inc.)

$1,548.00 (one payment – July)xix

Newspaper Ads (K-W Record) $1,125.00 (one payment – 4prints – July)xx

Business Cards (St. Jacobs Printery) $100.00 (one payment – 250cards – July)xxi

Ad./Flyer Distribution (K-W4Rent)

FREE!!!xxii

Appearance of Salon & Personnel:

The general appearance of our salon and our personnel will go along way in defining AmElite Hair Design’s brand/image. In the salonitself, we will have leather couches, rugs, granite counters,mirrors, artwork, pot lights, lamps, tiles (waiting area),laminate bamboo floor (cutting area), and light/appealing paintthat will match our logo. Our employees will maintain a semi-

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formal dress code and will have trendy hairstyles themselves.Being a hair salon that is offering the latesthairstyles/designs, we will want to make sure our employees arereflecting the image of the salon itself. Our personnel will lookvery professional; this will make our customers feel as thoughthey are getting ‘rock-star’ or ‘movie-star’ treatment from theindustry’s best hairstylists.

Pricing StrategyAmElite’s pricing strategy reflects a few variables including:

The amount of time devoted to servicing the client; The materials/products used for the service; Competitors’ prices for related products and services

(Competitive Pricing); The activities/events that we assume as a part of our

promotional efforts (Promotional Pricing)

Having done research on competitors’ prices for all types of services that we will be providing, we came to a competitive pricing approach. We will offer some of the lowest prices around;allowing us to better gain market share and primarily target/cater to students and young professionals on a budget. It is important for us to keep our prices low/competitive as one of our primary goals in the first year of operations is to substantially increase sales (especially when school begins in the fall).

In terms of the products that we will be selling at our location and holding in inventory, we will purchase them in bulk and on discount through CosmoProfxxiii (Exclusively for Beauty Professionals). This will include products such as gels, hairsprays, shampoos and conditioners. For color products, we will purchase through Loreal Matrixxxiv. With a continued relationship with these suppliers (such as the Club Matrix Rewards Program), Rita will benefit in terms of discounted prices on bundles of

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purchased products. Our mark-up on these products will be roughly40%; however, because we are offering bundle packages, this will not seem too high for our customers when combined with a service.For a full list of AmElite Hair Design’s prices for both products andservices, please refer to Appendix F - “Price Index”.

Operations/Human ResourcesWhat We Do & When:

AmElite Hair Design will provide a quality service of hair grooming and hair treatment, with two licensed hairstylists (including Rita Culley), and one apprentice hairstylist to begin operations.AmElite will be open six days a week (Monday-Saturday, 9:00 AM – 6:00 PM). All holidays and appropriate days off work will confirmto federal and provincial labour regulations.

Location:

Rita has chosen the location of 502 Albert Street in North Waterloo (Parkdale Plaza). Anchor tenants include: Dollarama, Shoppers Drug Mart, Pizza Pizza, and The Beer Store; with approximately 200 parking spaces available to the entire plaza. The size of the unit available will be 826 square feet and is wheelchair accessible with a cost of $26/sq. ft. (total cost of $1,800 per month, $21,500 per year). Rita has negotiated with thelandlord (Henry Tam) to have the first six months of rent at no cost. Utilities will cost approximately $250/month or $3000 per year. As noted above in the Target Market this a great location for Rita, due to the fact from the Average Annual Daily Traffic report for the Region of Waterloo there are over 16,000 vehicles passing through the intersection of Bearinger Rd./Hazel St. and Albert St. and is located 5 km from two local Universities, University of Waterloo and Wilfrid Laurier University as well as within 1 km of BlackBerry Headquarters which will be easily

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visible for traffic passing by and assessable to GRT bus routes. According to the Generation 5 Allocate database, the statistics indicate within 1 km of AmElite’s location there are approximately6,500 individuals in the immediate area.xxv This location is a great opportunity for Rita to get walk-in clients due to high density in the population. Start-up requirements for this location to be fully operational will be approximately $33,000 for complete renovations and added furniture/salon equipment. Allrenovations will be done through Core Contracting. xxvi All of our furniture/equipment will be purchased through CosmoProf (also our products supplier).xxvii

Ownership Structure:

In terms of ownership structure, AmElite will be an incorporated for-profit business. Rita Culley is the President/Executive Manager, making the majority of day-to-day decisions for the business. Other abstract business decisions will be made by both Rita and her husband, Geoff Culley, who will act as the Vice President of AmElite; this will help to assist Rita in the strategic planning process. Rita will be making decisions based on her ten years of experience and research in the salon industry.

Key Stakeholders/Employees:

Owner/Operator Rita CulleyVice President Geoff CulleyAssistant Manager To Be AnnouncedApprentice To Be AnnouncedAccountant Mohammad AbdullaLawyer Tanya StevensInsurance Dave TollLandlord Henry Tam

Governance:

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The governance structure of AmElite will consist of regulations for the rights and equitable treatment of stakeholders, interestsof other employees, roles and responsibilities of the organization, integrity and ethical behaviour, as well as disclosure and transparency of these policies. Rita believes thatthere is a need to have a solid company foundation to ensure the start-up of the business occurs smoothly, and has minimal confusion about roles and responsibilities. To assist in this process, Rita will create and delegate authority when making decisions and create clear communication lines to help guide employees to recognize the decisions that they can make on their own. She will have a Policy and Procedures Document that will conform to the appropriate Ontario Ministry of Labour Laws. Please refer to Appendix G – “Policy & Procedures Manual”.

HR Strategy:

A defined planning process will take place to achieve the definedbusiness goals/missions. This strategic HR planning process will consist of a competency-based management technique that will support the integration of human resources planning with businessplanning; allowing AmElite to assess their current HR capacity, forecasting HR requirements, gap analysis, and developing HR strategies to support organizational strategies. There will be a consistent evaluation and monitoring of this strategy to ensure profitability and to ensure that we are meeting the needs of employees and other stakeholders. Establishing competency architecture will help support the strategic HR planning process for AmElite and for each group there will be defined roles concerned with how stylists perform their duties, understanding their responsibilities, and their ability and willingness to helpthe profitability of the salon. For assessing our HR capacity, the knowledge, skills and abilities of the staff need to be identified and can be done by developing a skills list for each employee. The skills list will go beyond the skills needed for

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the particular position and will also list all the skills each employee has demonstrated. This is a great way for Rita to reviewan employee’s performance to determine if the employee is ready and willing to take on more responsibility.

Forecasting:

Forecasting requirements for AmElite will be based on future strategic goals for the organization which involves estimating both demand and supply. The amount of staff required to achieve strategic goals, specific duties needed to achieve these goals, and the skill set of employees will help Rita deal with her demand and supply for the business. This will also help assess challenges AmElite will have in meeting staff needs based on the external environment. Some external impacts will be taken into consideration for the forecasting process which will include: howthe current economy will affect AmElite and their ability to attract new employees, how technological or cultural shifts will impact the way AmElite works and the skilled labour required, certain changes occurring in the Canadian labour market, and how may the community around AmElite will be changing or expected to change in the future.

Gap Analysis:

AmElite’s gap analysis will identify the number of staff and the skills/abilities required to perform everyday tasks for profitability and take into consideration what is required for future plans. This will include continuous improvement to AmElite’s HR management practices to identify certain areas that could be improved or new practices needed to support the organizations capacity to move forward. Rita will be considering asking certain questions such as, what new jobs will be needed, what new skills are required, does the current employees have therequired skills, are the employees in positions that use their

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strengths, are there enough managers/supervisors, and are the current HR management practices adequate for future needs.

Training/Recruitment:

In order to satisfy and support organizational strategies within AmElite, Rita Culley has training and development, recruitment, outsourcing, and collaboration strategies in place to help reach business goals. The training and development strategies will include providing employees’ proper training to take on current and new roles, as well as providing the staff with development opportunities to prepare for future jobs in AmElite. Rita will outsource a private firm to come into AmElite for on-the-job training to give each employee the appropriate WHMIS, MSDS, and Workplace Health & Safety training; ensuring chemicals and other health concerns are handled properly.

Upon opening day July 1st/2013, Rita will have recruitment strategies in place to recruit one licensed hairstylist and one apprentice employee. This strategy will include recruiting requirements of employee skills and abilities that will suit the organization. Also, Rita will strategically promote these job openings and will encourage suitable candidates to apply. AmElite will be promoting these job openings on websites such as Monster.ca, Jobbank.gc.ca, Kijiji.ca and Workopolis.ca, as well as in local newspaper advertisements. This will ensure any opening positions at the salon will have a high number of applicants, and that Rita will have quality applicants to choose from.

A sample AmElite Hair Design job posting can be found in Appendix H – “Job Posting”

Outsourcing:

With regards to outsourcing, AmElite has outsourced certain tasks for external individuals. These tasks will include accounting and

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bookkeeping done by Mohammed Abdulla, who has had over 35 years working in the industry as a Certified General Accountant of Ontario. Although the salon software SalonIris does keep track ofinventory, sales and day-to-day bookkeeping, Mr. Abdulla will collect documents pertaining to finances on a weekly basis. The legal responsibilities will belong to Tanya Stevens who is self-employed and has approximately ten years of experience working inthe legal business industry.

To help explore indirect strategies that go beyond AmElite’s organization, we will be collaborating with other organizations such as hair salon schools in the area. This helps deal with potential shortages of certain hairstylists in the industry and helps employ apprentices acquiring hours to complete their apprentice certificate, and reduces hiring costs. This decision will help impact on practices such as supervision and on-the-job training Rita strongly believes in helping the hairstyling community and would like to collaborate with another hair school to give the opportunity to get experience for apprentices and will help her become locally known for giving back to the community and potentially increase sales.

Compensation:

Compensation for employees’ work will consist of an hourly wage for the assistant manager of $14/hour for approximately 30 hours/week plus 4% commission for any additional sales on hair products, and $11/hour for the apprentice working approximately 35 hours/week plus 4% commission for any additional sales on hairproduct. Rita is also conforming to labour regulations and will provide basic benefits to her employees, including: Employment

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Insurance and Canadian Pension Plan contributions; this will be handled through payroll done by the accountant Mr. Abdulla.

Employment Prospects:

From Ontario.ca: “Opportunities for employment in this occupationare expected to be good over the period from 2009 to 2013, due togrowth in population. As well, replacement needs are expected to create a substantial number of job openings yearly due to the rapid turnover and the large size of this occupational group.”xxviii

As illustrated, Rita will have a large group of individuals to choose from when hiring, so there is no shortage of talent. She will need to ensure that she picks someone who will remain with our business for a significant amount of time, as turnover can behigh in our industry.

Layout/Design:

Our salon’s layout/design will be simple to keep costs down. We will take into consideration the level of comfort for both the staff and the clients in the salon. We will keep in mind the accessibility of the most frequently used tools and products and we will position products with the highest profit margins at eye-level. Although we will be purchasing a great deal of furniture and equipment, we will try and give the salon a simple, yet elegant look in terms of design. A floor plan of the salon can befound in Appendix I – “Layout”

Capacity:

Considering AmElite will start off with three operating salon chairs, our capacity to cover rent of $1,800 a month will entail that each salon chair must take on three customers a day; with each customer spending approximately $30 per visit. This will total $6,500 a month, so Rita will be able to cover all fixed

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expenses. In the case where two employees are unable to work, Rita’s personal capacity will be nine customers per day, also spending approximately $30 per visit; so rent and utilities are paid. After every hair service done, there will be a quality control process which takes place at the end of the service and will be verified for customer satisfaction upon paying for the service. If the customer is dissatisfied with the service, AmElitestaff will undergo everything possible to ensure customer satisfaction. Our customers have 24 hours to return if they are dissatisfied with their service from the previous day.

Licenses/Permits:

The licenses and permits that Rita will need to obtain include:

Business Registration/Name-Search in Ontario ($68)xxix

Municipal Business License (in order to do business in the municipality)

Vendor Permit (in order to engage in retail sales and chargesales tax)xxx

Building Permit (for renovations)xxxi

Regulationsxxxii (or potential regulations):

The regulations/potential regulations that will apply to our business include:

Health regulations and requirements (health of customers/staff)

Fire safety standards or regulations (exits, protocol, etc.) Retail sales tax regulations Air quality and safe environment regulations Hazardous substances regulations Smoking regulations Protection of personal information Radiation Emitting Devices Act (not applicable as of now –

no tanning beds)

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Insurancexxxiii:

Adequate insurance coverage will be of major importance to us. Rita has an insurance program already in place (Dave Toll, State Farm Insurance Brokers), that will cover:

Fire Insurance (extended coverage on buildings and contents) Liability Insurance Burglary Protection (theft coverage) Dishonesty insurance (covers theft by employees) WSIB (Workplace Safety and Insurance Board) Coverage: up to $2 Million Yearly expense: $1,200

Financial SummaryFinancingRita Culley is investing $30,000 of her own into the start-up of this business. In terms of additional financing, our business is asking for a $60,000 loan from TD Bank. We are assuming an interest rate of 4% (Prime plus 1). This loan will be paid back monthly in equal instalments of $2,000. We will pay back the loanwithin 32 months (within our third year). Out total principal with interest will be $64,000 ($4,000 in interest).xxxiv The detailed loan repayment can be found in Appendix J – “Loan Calculator”.

Initial CostsOur initial/start-up costs will be $40,950. This will include: inventory, supplies, equipment, furniture, initial advertising, and any legal/regulatory expenses. The breakdown of these costs can be seen in Appendix K - “Financial Statements”.

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Breakeven AnalysisAverage expenditures at our salon are $30. This means that we will need to do 3,584 haircuts to reach our break-even point. Please refer to Appendix K – “Financial Statements.”

Sales Projections

Here are the sales projections for our first three years of operation:

Year 1 Year 2 Year 3$138, 444 $145, 643 $156, 143

We are expecting our first year sales to be $138,444. In year two, these sales will ramp up to $156,442. In year three, we continue to see growth and projected sales rises to $172,778. Allsales projections are based on our market share, total market size, and expected percentage increases. (Please refer to Appendix K – “Financial Statements”.)

Implementation/TimelineOur business is planning to open our doors at 9am on July 2nd, 2013. Thetimeline for AmElite Hair Design is as follows:

Task Task Started: Task Completed: Task CompletedBy:

1. Business name search February 18, 2013 February 25, 2013 Rita & Geoff CulleyTanya Stevens (Lawyer)

2. Obtain business licence February 25, 2013 February 28, 2013 Geoff Culley3. Acquire lease and lease

contractFebruary 19, 2013 March 1, 2013 Rita & Geoff

CulleyHenry Tam

4. Contact Accountant March 1, 2013 March 1, 2013 Geoff Culley

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Mohammed Abdulla

5. Acquire building permitsand other legal documents

March 4, 2013 March 11, 2013 Rita & Geoff CulleyCorey Rudy (Contractor)Municipality of WaterlooTanya Stevens

6. Begin renovations March 12, 2013 Corey Rudy: (Core Contracting)

7. Purchase Salon Equipment March 18, 2013 March 18, 2013 Rita & Geoff Culley

8. Acquire Marketing tools March 13, 2013 March 14, 2013 Geoff CulleyActive Marketing

9. Post job postings March 25, 2013 March 25, 2013 Rita & Geoff Culley

10.Interview process June 3, 2013 June 17, 2013 Rita & Geoff Culley

11.Hire employees June 17, 2013 June 17, 2013 Rita Culley12.Complete renovations April 2, 2013 Corey Rudy

(Core Contracting)

13.Install equipment April 5, 2013 April 7, 2013 Rita & Geoff CulleyOther members

14.Train Employees June 18, 2013 June 21, 2013 Rita CulleyOutside SafetyCompany

15.Prepare for opening day June 29, 2013 June 30, 2013 Rita & Geoff CulleyEmployees

16.Open Salon July 2, 2013 July 1, 2013 AmElite Hair Design Salon staff

ConclusionAs you can see, AmElite Hair Design has a major opportunity to capitalize on a market with a great deal of potential. Hairstyling/design is a billion dollar industry and has proven steady growth over the past few years.

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Having an ideal location such as ours, and the ability to reach our target market through a wide array of marketing tools, we arecertain that this business will be successful (or profitable).

Given Rita Culley’s ten years of experience in the industry, and proven customer satisfaction (through here current clientele), our entrepreneur is bringing much to the table in terms of know-how and expertise.

This is a business that is already somewhat established; getting it “off the ground”, so to speak, will be much easier than if it was starting from scratch. The fact that it is an established business should not be overlooked when considering the potential and feasibility of the business.

AmElite Hair Design is a business that will set itself apart from competitors by offering a dynamic, personalized experience for customers, and for an affordable price. We will gain significant increases in sales/market share as the business continues to grow.

AmElite Hair Design – Keeping You Elite

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Order of AppendicesThe order of our Appendices will be as follows:

A – Map of Location B – Entrepreneur Profile C – SME Benchmarking D – Competitor Matrix E – Quotation (Salon Iris) F – Price Index G – Policy/Procedures Manual H – Sample Job Posting I – Layout/Floor Plan J – Loan Calculator K – Financial Statements

o Input Sheeto Cash Flow Sheets (2014, 2015, 2016)o Income Statements (2014, 2015, 2016) o Balance Sheets (2014, 2015, 2016)

Our Appendices begins on the next page…

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Appendix AMap of Location

Source: https://google.maps.ca

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Appendix BEntrepreneur – Profile

(Above: Geoff & Rita Culley)

Our entrepreneur Rita Culley is happily married with two children, currently residing in Heidelberg, Ontario. She is 50 years old. Rita was born and raised in British Guyana and immigrated to Kitchener-Waterloo in 1980. Starting her family at a young age, it was necessary to work extremely hard to provide for her family and be successful in Canada. Rita worked at various jobs in the Kitchener-Waterloo area including having worked in the manufacturing industry. In 1987, she was offered a great opportunity to work for NCR in North Waterloo; unfortunately, due to downsizing, she was laid off in 1999. At this cross-road in her life, she was faced with the decision of either entering the corporate/working world again, or try a new venture where she would be able to use her natural artistic skills to her advantage. Rita quickly enrolled at Twin-City School of Hairstyling and completed a one year apprenticing program, graduating at the top of her class with a 100% overall final average. After graduating Rita worked at First Choice Haircutters in Kitchener, to obtain adequate hours to get her Hairstylist Apprentice Certificate. In 2003 Rita then wrote the

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Ministry of Ontario’s Hairstylist Licensing Exam and was granted to be fully certified to work as an independent hairstylist in Ontario. From her current residence in Heidelberg, Rita worked out of the basement with a fully operational salon and worked diligently to gain her current clientele base of 80-100 clients under the business name of “Rita’s Creations”. Working at home for approximately ten years, and having an already successful business in place, Rita has come to realize that an expansion of her current business is needed. She is now exploring options to operate AmElite Hair Design in North Waterloo.

Appendix C – SME Benchmarking/In Dollars

Industry Canada | Industrie CanadaGovernment of Canada | Gouvernement du Canada

WholeIndustry(Reliability)

LowerHalf(50%)

UpperHalf(50%)

BottomQuartile(25%)

LowerMiddle(25%)

UpperMiddle(25%)

TopQuartile(25%)

PercentofBusinessesReporting

Number of Businesses 6924Revenue Range:

Low Value ($ 000) 30 30 67 30 43 67 152

High Value ($ 000) 5000 67 5000 43 67 152 5000

REVENUES AND EXPENSES (thousands of dollars)

Total revenue 159.6044.6

0274.50 35.80

53.50

99.40

449.60 100.00

Cost of sales (direct expenses) 46.80 6.40

87.20 4.60 8.10

20.20

154.10 72.80

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Wages and benefits 20.70 0.60

40.80 0.20 1.00 5.10 76.60 13.80

Purchases, materials and sub-contracts 26.50 5.80

47.10 4.40 7.20

15.20 79.10 74.20

Opening Inventory 5.30 1.00 9.60 0.70 1.20 2.70 16.50 42.40

Closing inventory 5.70 1.00

10.40 0.70 1.30 2.80 18.00 44.20

Operating expenses(indirect expenses) 93.40

21.90

164.90 16.80

26.90

58.70

271.20 100.00

Labour and commissions 42.00 3.00

81.00 1.40 4.70

21.00

140.90 46.50

Amortization and depletion 3.70 1.10 6.40 0.90 1.30 2.50 10.20 74.70

Repairs and maintenance 2.00 0.70 3.30 0.50 0.80 1.50 5.10 64.10

Utilities and telephone/telecommunication 3.80 1.80 5.90 1.40 2.10 3.30 8.50 89.80

Rent 17.90 6.5029.3

0 5.40 7.7012.7

0 45.90 73.50Interest and

bank charges 1.30 0.50 2.20 0.30 0.60 1.30 3.10 60.30Professional

and business fees 2.50 0.70 4.30 0.50 0.90 1.70 7.00 82.30Advertising and

promotion 2.30 0.60 4.10 0.50 0.70 1.30 6.80 70.30Delivery,

shipping and warehouse expenses 0.10 0.00 0.10 0.00 0.10 0.10 0.20 11.40

Insurance 1.30 0.50 2.00 0.40 0.60 1.10 2.90 72.00

Other expenses 16.40 6.4026.3

0 5.40 7.5012.1

0 40.40 99.00

Total expenses 140.1028.2

0252.10 21.40

35.00

78.90

425.20 100.00

Net profit/loss 19.4016.4

022.5

0 14.4018.4

020.5

0 24.40 99.90

Average number of paid employees 0.00 0.00 0.00 0.00 0.00 0.00 0.00

FINANCIAL RATIOSInterest coverage ratio 15.50

35.70

11.10 43.10

31.50

16.80 8.80

Gross margin (%) (thousands of dollars)

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PROFITABLE vs NON-PROFITABLE BUSINESSESProfitable

Percent of businesses (%) 84.70

Total revenue 147.00

44.50

264.70 35.70

53.40

98.90

451.80

Total expenses 121.30

25.40

231.40 19.00

31.90

72.10

411.10

Net profit 25.7019.1

033.3

0 16.8021.5

026.8

0 40.70Non-Profitable



45.70

310.90 36.00

54.30

101.90

443.50


55.50

328.70 46.40

63.40

113.20

465.50

Net loss 15.40-

9.80

-17.9

0-

10.40-

9.20

-11.3

0-

22.10

Profile

Data Reference Year 2010Geographic Area CanadaIncorporation Status All BusinessesDisplay Values (Expenses) Thousands of DollarsSelected Industry NAICS 812116 - Unisex Hair Salons

Comparison GroupsLower Half; Upper Half; Bottom Quartile; Lower Middle; Upper Middle; Top Quartile

Size of Firms Annual Revenues $30,000 - $5,000,000

Source: Statistics Canada - Small Business Profiles

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Appendix C – SME Benchmarking/Percentages

Industry Canada | Industrie CanadaGovernment of Canada | Gouvernement du Canada

WholeIndustry(Reliability)

LowerHalf(50%)

UpperHalf(50%)

BottomQuartile(25%)

LowerMiddle(25%)

UpperMiddle(25%)

TopQuartile(25%)

PercentofBusinessesReporting

Number of Businesses 6924Revenue Range:

Low Value ($ 000) 30 30 67 30 43 67 152

High Value ($ 000) 5000 67 5000 43 67 152 5000

REVENUES AND EXPENSES (percent of total revenue)

Total revenue 100.00100.00

100.00

100.00

100.00

100.00

100.00 100.00

Cost of sales (direct expenses) 29.30

14.30

31.70 12.80

15.20

20.30 34.30 72.80

Wages and benefits 13.00 1.40

14.90 0.60 1.90 5.20 17.00 13.80

Purchases, materials and sub-contracts 16.60

13.00

17.20 12.30

13.50

15.20 17.60 74.20

Opening Inventory 3.30 2.10 3.50 2.00 2.20 2.70 3.70 42.40

Closing inventory 3.60 2.30 3.80 2.00 2.40 2.80 4.00 44.20Operating expenses(indirect expenses) 58.50

49.00

60.10 47.00

50.30

59.00 60.30 100.00

Labour and commissions 26.30 6.80

29.50 3.90 8.70

21.10 31.30 46.50

Amortization and depletion 2.30 2.50 2.30 2.50 2.50 2.50 2.30 74.70

Repairs and maintenance 1.20 1.50 1.20 1.30 1.50 1.50 1.10 64.10

Utilities and telephone/telecommunication 2.40 4.00 2.10 4.00 3.90 3.30 1.90 89.80

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Rent 11.2014.7

010.7

0 15.1014.4

012.8

0 10.20 73.50Interest and

bank charges 0.80 1.10 0.80 1.00 1.10 1.30 0.70 60.30Professional

and business fees 1.60 1.50 1.60 1.40 1.60 1.70 1.60 82.30Advertising and

promotion 1.50 1.30 1.50 1.30 1.30 1.40 1.50 70.30Delivery,

shipping and warehouse expenses 0.10 0.10 0.00 0.10 0.10 0.10 0.00 11.40

Insurance 0.80 1.20 0.70 1.20 1.20 1.10 0.70 72.00

Other expenses 10.3014.5

0 9.60 15.2013.9

012.2

0 9.00 99.00

Total expenses 87.8063.2

091.8

0 59.8065.5

079.4

0 94.60 100.00

Net profit/loss 12.2036.8

0 8.20 40.2034.5

020.6

0 5.40 99.90

Average number of paid employees 0.00 0.00 0.00 0.00 0.00 0.00 0.00

FINANCIAL RATIOSInterest coverage ratio 15.50

35.70

11.10 43.10

31.50

16.80 8.80

Gross margin (%) (thousands of dollars)

PROFITABLE vs NON-PROFITABLE BUSINESSESProfitable



44.50

264.70 35.70

53.40

98.90

451.80


25.40

231.40 19.00

31.90

72.10

411.10

Net profit 25.7019.1

033.3

0 16.8021.5

026.8

0 40.70Non-Profitable



45.70

310.90 36.00

54.30

101.90

443.50


55.50

328.70 46.40

63.40

113.20

465.50

Net loss 15.40 - - - - - -

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9.8017.9

0 10.40 9.2011.3

0 22.10

Profile

Data Reference Year 2010Geographic Area CanadaIncorporation Status All BusinessesDisplay Values (Expenses) % of Total RevenueSelected Industry NAICS 812116 - Unisex Hair Salons

Comparison GroupsLower Half; Upper Half; Bottom Quartile; Lower Middle; Upper Middle; Top Quartile

Size of Firms Annual Revenues $30,000 - $5,000,000

Source: Statistics Canada - Small Business Profiles

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Appendix D – Competitor MatrixLocation Information Prices Hours of

OperationLocation Competitive

AdvantageAppointment/Walk-

in

NotesTOTALS

weight .35 .10 .20 .30 .05

Head Kuarters 465 Phillip, Waterloo, ONN2L 6C7 (519) 884-6589 headkuarters.ca

Men $20Woman $33

Men’s highlight $55Woman’s highlight $85+

3*.35=1.05

Mon-Fri 8am-8pmSat 9am-5pmSun- Closed

4*.10=.40

3.75*.2= .75

-pro tips-personal portfoliofor clients-discounts for men-on-line website

4*.3=1.2

Yes

.5

-no on-line booking

=3.9

First Choice Haircutters 160 University Ave W, Waterloo, ON N2L 3E9 University Shops Plaza (519) 888-7500 firstchoice.com

Men $18Woman $23


4*.35=1.4

Mon –Fri 9am-9amSat 8:30am-6pmSun 11am-4pm

5*.10=.50

4.5*.2=.9 - Open 7 days a week-Low price-Reputable-Various locations-Offers discount for seniors children

3*.3=.9

Yes

.5 =4.2

Headspace 145 Columbia W, Waterloo,ON N2L 3L2 (519) 746-0078

Men $22Woman $40


3*.35=1.05

Mon –Fri 10am-6pmSat - appointmentonlySun - appointmentonly3*.10=.30

3.5*.2=.7 -Open 7 days a week-appointment can bemade

No

0 =2.05

Hair Plus 170 University Ave W, Waterloo, ON N2L 3E9 (519) 745-5556

Men $20Woman $30


3*.35=1.05

Mon-Sat 10am-6pmSun – Closed4*.10=.40

5*.20=1 -N/A

2.5*.3=.75

Yes

.5

-no web site

=3.7

BJ's Hairstyling For Men 4-150 University W, Waterloo, ON N2L 3E4 (519) 884-6361

Men $22.60Men’s highlight $55

2*.35=.70

Mon –Fri 9am-8amSat 8:30am-3pmSun-Closed3.5*.10=.35

4*.2=.8 -no cuts for woman only serve males 3.5*.30

Yes

.5

-no web site

http://maps.google.ca/local_url?dq=haircut+in+waterloo+ontario&q=http://www.firstchoice.com/%3Futm_source%3Dlbc%26utm_medium%3Dmaps%26utm_campaign%3Dlbc&ved=0CIYBEOQE&sa=X&ei=BkcNUbnyHJPBwAGt_IHQBA&s=ANYYN7kPFk4mELgz_Z_NCbWIwaWCYFCiWQ

https://plus.google.com/108616491537465808142/about?gl=CA&hl=en-CA&ved=0CIcBEP4M&sa=X&ei=BkcNUbnyHJPBwAGt_IHQBA

http://maps.google.ca/local_url?dq=haircut+in+waterloo+ontario&q=http://www.headkuarters.ca/&ved=0CIcBEOQE&sa=X&ei=N0YNUYG7FuSnwQHC7YH4CQ&s=ANYYN7mVc4C1ncvgL1MDnQaVq7vhm5Bniw

=2.65

AmElite Hair Design502 Albert St

Men $19Woman $26


4*.35=1.4

Mon –Fri 8am-6pmSat 8am-6pmSun-Closed3.5*.10=.35

5*.2=1 -Student discount cards-Group cuts-Scalp treatment-Corporate rates-On-line booking-Portfolio pre visits

4.5*.3=1.35

Yes

.5 =4.6

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Appendix E

Quotation

Quotation ID: 220261

Customer ID: 80155

Dates: 3/5/2013

DaySmart Software, Inc.30475 S. Wixom Road, Suite100Wixom, MI 48393

To: Geoffrey Culley

Stock # Description Price Quantity

Total

SWSCDPRO Salon Iris Professional Version 10

$1,199.00

1 $1,199.00

WEBUN Online appointment booking subscription

$349.00

1 $349.00

Free Updates

Free updates/Maintenance Releases

$0.00 1 $0.00

Free OLB Trial

Free 30-day trial for online appointment booking

$0.00 1 $0.00

Support Free

Unlimited Support/Training for3 months

$0.00 1 $0.00

Free RA Trial

Remote Access free for 30 days $0.00 1 $0.00

CCIP Free X-Charge integrated credit card processing software

$0.00 1 $0.00

Subtotal: $1,548.00

Tax: $0.00

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Total: $1,548.00

All hardware and gift card sales are non-refundable. Software may be returned within 30 days of purchase for a full refund. This quote expires in 7 days.

Don't hesitate to give us a call toll-free at (800) 423-8100 if you have any questions regarding this quote. We can also be contacted by e-mail at [email protected] our website at http://www.SalonIris.com

Appendix F

Price IndexServices:

Here is a list of prices (taxes included) for each of our offered services:

Haircut (Men) $16Haircut (Female) $19 (starting)Haircut (Kids) $12Highlights (Foil) $65Highlights (Cap) $45Colour $60Perm $65 (starting)Up-do $30 (starting)Facials $10Wax $10Blow dry $5Scalp Treatment $10Male Facial Grooming $10Male Facial Grooming (with haircut)

$25

Products:

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http://www.SalonIris.com/

Here is a list of prices for some of the main products that we will be offering:

Premium Shampoo/Conditioner $34.99 + TaxMatrix Shampoo/Conditioner $29.99 + TaxJoico Shampoo/Conditioner $19.99 + TaxHair Gel $12 (Tax Included)Pomade $12 (Tax Included)Hairspray $15 (Tax Included)

Appendix G

AmElite Hair Design - Policy Manual – Revised Edition (2013)Welcome to AmElite Hair Design…

We look forward to you becoming an active and integral part of our team. It is vitallyimportant that you read our policies and incorporate them into your daily work performance. Our mission of consistent, quality service to every customer requires consistent application of our commitment to excellence in everything we do here at AmElite Hair Design.

New Team Member Orientation

Welcome! Please feel free to keep this sheet with you for your first few days here atAmElite. It is also recommended that you bring a notebook to the salon, in which you cantake your own notes, and also keep on file any educational materials or memos youreceive. There are no “stupid” questions at AmElite- it’s always better to ask (as manytimes as needed), than to do something incorrectly.

The most important things you can do to familiarize yourself with our policies andprocedures is to thoroughly read the Policy Manual, Education Manual, and any noticesposted in the salon.

The Basics

The salon is located at 502 Albert Street, Waterloo, Ontario. The office is keptlocked when unoccupied. The key will be given to the manager and assistant manager.

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When others are working in the hair salon, please be respectful of the noise level.Coats, lunches and personal belongings are kept in the break room, not in the salonworking area.

Smoking is allowed at the rear of the building. Please do not smoke at the entrance tothe building, or in front of clients. Take all necessary actions to rid yourself ofthe aroma before re-entering the salon. We do not allow gum chewing on the salonfloor.

The sign-in sheet is located under the front desk, and will be given to you by themanager in charge. Sign in for beginning of your scheduled shift and sign out at theend of your scheduled shift. Sign out for breaks, lunch and any time spent out of thesalon. Pay days are in a by-weekly schedule and will be paid on the 2nd and 4th week ofthe month, after 3PM, excluding weekends and holidays (see calendar in the lunchroom).

Important information, education updates and memos are to be found in the break room.Please watch these areas for information. A manager will work with you during yourfirst week to set your schedule. Please remember that you are expected to work allyour scheduled days during your probationary period. See the Policy Manual for sickday procedure.

OUR MISSION

AmElite Hair Design is committed to providing the best services to our customers. We striveto provide ongoing education to our customers about services, products, and changes inthe beauty industry (styles, trends, colors, etc.). Our responsibility to our customers is to maintain a good reputation for quality services in our salon. We are committed to performing exceptional services while also providing our customers with unwavering and personalized support. At AmElite Hair Salon, we will not accept mediocrity. We are educated and passionate about our industry and will uphold exceptional standards for quality and superiority in the industry.

OUR PHILOSOPHY

To maintain a well-educated staff who find satisfying challenges in providing the finest hair services and techniques available. We pay our stylists accordingly, and provide the compensation and benefits that will keep them happily employed in a careerwith AmElite Hair Design.

OUR OBJECTIVES

Commitment to learning: team members and the salon grow only when knowledge is constantly expanding. We believe in being open to and seeking out new ideas and techniques. We expect our staff to maintain a high level of self-motivation and commitment to learning.

Customer Service: it is our philosophy and practice that the customer is always right,and always deserves the absolute best our salon can offer them. Our point-of-difference is based on providing value-added service and going “above and beyond” the average salon experience.

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Salon Environment: our commitment to providing our customers with the best extends to the environment we serve them in. We expect every team member to join us in presentinga salon that is always sparkling clean, soothing and calming, with relaxing and appropriate music, aromas and attitudes.

I. SALON SAFETY AND SANITATION

All new team members are given a salon orientation during which we cover chemical storage and usage in both the dispensary and the storage areas. We show the location of fire extinguishers, safety equipment such as smocks, gloves and safety glasses, thefirst-aid kit, and building exits.

Team members are expected to follow provincial regulations in the storage, usage and sanitation of implements, capes and smocks, salon fixtures and personal cleanliness. Sanitizers and disinfectant preparations are provided by AmElite.

Whenever there is a questionable situation in the use of a chemical solution on a client, such as scalp abrasions, excessive chlorine deposit, or previous damage, wherethe client is insistent upon having the service performed over your professional reservations, it is our policy to have the client sign a service release form that releases you and the salon from any liability resulting from the application of such procedures. These forms are kept at the front desk. Please have a manager witness yourusage of the form.

It is our policy to provide our team members with a safe working environment. Please report any defects you find in plumbing, electrical or other equipment. Do not attemptrepairs yourself. It is the policy of AmElite Hair Design that sexual or other harassment constitutes a violation of personal safety. If you feel you are the victim of harassment from a team member, manager or client, please report it to a team member you feel safe with immediately. Violations of team members’ physical or emotional safety will not be tolerated.

II. HIRING AND EMPLOYMENT

AmElite is an equal opportunity employer, and abides by all applicable laws and statutesregarding equal opportunity employment. We encourage diversity in our hiring processand encourage all interested parties to apply when there is a staff opening. All newemployees are placed on a three month probationary period from date of hire, duringwhich either party may terminate the employment agreement for any reason withoutcause. During this time, the employee is expected to work their designated schedule(barring extreme emergencies), and to perform their duties without incurring anydisciplinary warnings.

This policy manual and each team member’s job description are intended to clearlyspell out rules of conduct and our expectations for work behaviour. If you do notunderstand any portion of the manual or job description, please ask for an explanationbefore challenges arise. Team Member Action Forms are given based on the policies ofthis manual. Refer to the manual whenever there is a question of conduct or rules.

Staff members are expected to arrive 10 minutes before their first scheduledappointment to be prepared for the day ahead. During your scheduled hours you are

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first expected to provide service to customers. When you have open time, we expect youto contribute a reasonable amount of time to salon appearance, laundry or assistingothers who may be behind. During unfilled appointment slots in your scheduled workday, you will be expected to be working on other duties within the salon. Leavingduring your scheduled hours (or arriving later than your scheduled start time) for areason other than lunch, a 15 min. break, or emergency needs to be okayed by amanager.

Failure to use open time to assist, or clean will result in review by the management,and may result in issuance of a Team Member Action Form and/or termination. You arescheduled a one-hour lunch, and you should find time for two 10-15 min. breaks duringthe day. The exact starting times of different team members varies. We will try to beas accommodating as possible to your scheduling needs, but keep in mind that setting aconsistent schedule helps customers to rely on your hours for their service needs.Chronic tardiness and absences will be causes to receive Team Member Action Forms, andtermination may result.

We understand that everyone needs a day off now and then. A burnt-out stylist does their clients and the salon a disservice. We expect that days off not caused by illness will be kept to a minimum. Clients will eventually switch stylists (or salons)if they find themselves being frequently rescheduled or that their stylist is frequently unavailable. Use your weekends effectively so that additional days off are not required frequently. Watch for signs of burnout so that you can request a day off in advance, when no clients are scheduled. If you need a day off for a special occasion, it must be planned in advance and cleared with a manager two weeks prior to the scheduled day off. Submit all requests in writing and have them approved before any time is marked off the books. Generally, written requests for time off are approved unless two people ask for the same time off, or your absence would cause a severe hardship on the salon. We encourage you to work out trades with your co-workersfor time off, as long as they are approved by a manager.

Time off will be granted to employees for severe illness or death in the immediate family, extremely inclement weather, or for compelling personal reasons (see manager for details). Part of being a service provider is an ability to “put on your salon face” and work on clients even when you don’t feel your best. Extended leave-of-absence and maternity leave will be granted on a case-by-case basis. Chronic illnessesand more than 12 sick days per year (one per month) resulting in excessive absences will be reviewed by the management, and may require a physician’s note, and/or termination may follow.

Any staff member who will be absent due to illness must notify a manager or team leader 1 hour before the scheduled shift, on the first and every day of the illness. Speak to the manager personally. Home phone numbers of managers are provided to you for this purpose. Failure to make a manager aware of your illness will result in a Team Member Action Form being given and possible termination.

The following are national holidays that the salon will observe by being closed (they are not paid days off):

New Year’s Day Family Day weekend Easter (Good Friday)

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Canada Day Labour Day weekend Thanksgiving Christmas Day & Boxing Day

If there is a personal religious or cultural holiday that you choose to observe, let the management know in advance so that it may be marked off in the books. All vacationrequests must be submitted in writing, at least two weeks in advance. It is a hardshipon the salon for two people to have the same time off for vacation, so check the office calendar to avoid conflicts. The first person to ask for the time will be granted it. Please see the “benefits” section for policies regarding vacation pay.

Violations of salon policies and expectations will result in discipline, and in some cases, termination of employment. A violation will result in issuance of a written Team Member Action Form, which will be discussed with the staff member and placed permanently in their personnel file. Three Team Member Action Forms given in a six-month period, dealing with the same challenge will result in termination. In cases such as theft, substance abuse or insubordination, termination will be immediate.

New stylists are paid an hourly wage through their probationary period, balanced 4% commission as they sell products to customers. Your hourly wage is based on your previous experience and the value you provide to the team. Please see the “Pay Structure” for specific wage and commission details. Pay dates are posted on the lunchroom calendar. Pay days are twice monthly, and checks are made available after 3PM.

We understand that everyone occasionally has personal financial emergencies. We can, from time to time, offer payroll advances. These are to be used only when absolutely necessary. The maximum amount we can issue is $100.00, once a month. Draws will be withheld from your next pay cheques. Excessive abuse of the draw system will result inconsultation with the management, and the benefit may be denied.

Employee reviews (evaluations) are given every six months. A sample of the review is contained in this manual to give you an overview of the areas you will be graded on. Reviews are a useful tool to measure your progress, and they are presented in a nurturing, positive way. In order to build our strengths, we must also strengthen our weak points. Areas of your performance which need improvement will be pointed out, andsuggestions for improvement will be discussed.

Your review results account for 50% of your pay raise process. At the beginning of every month, we conduct individual productivity meetings. The results of these meetings account for 50% of your pay raise process. Each month, your available hours are measured against the hours you are actively productive, either performing services, or assisting others. We do not recommend raising haircut prices more than once every year, so sometimes your level of productivity will entitle you to another benefit. The productivity meeting also allows a monthly viewing of your yearly goal that entitles you to a bonus. Please see the “Benefits” section for details on bonuses.

All employees who leave our company, whether self-terminated or let go, are asked to have an exit interview. This information becomes a permanent part of your personnel file, and documents the reasons and circumstances regarding your termination. You are

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entitled to take your tools and personal property. You are not entitled to computer printouts, client files or information, salon products, equipment or supplies. Final pay cheques are issued on the regular pay date of the pay period during which you lastworked for the salon. Final pay cheques will only be mailed if requested, along with acurrent mailing address. Final pay cheques will only be released to someone other thanthe employee if we have been instructed to do so in writing by the terminating employee.

III. BENEFITS

All full time (defined as averaging 31or more hours per week for the previous year) staff members are entitled to one week’s paid vacation after one year of continuous employment. Part time (30 hours and under per week) employees are entitled to 2 paid days off. Your pay will be for 5 (or 2) days, based on your average for the previous quarter. Vacation pay after the second year may be negotiated as part of your review/productivity benefits. Your vacation must be planned in advance, and marked on the calendar. Vacation days must be used for pre-planned absences/vacations. They are not negotiable as “paid sick days”, unless a medical procedure is pre-planned.

Staff members may purchase salon retail products at product cost plus 10% plus tax. The price sticker (or product SKU number) must be attached to a ticket and given to the manager in charge to ring in. You may charge the purchase against your next pay cheques. Some special edition items may not be eligible for the employee discount.

It is our policy to provide our staff with continuing education, both technical and inthe areas of wellness and self-fulfillment.

AmElite Hair Design recognizes each staff member on their birthday with an unpaid day off, and a bonus check equal in dollars to your age.

IV. COMMUNICATION

We employ an “open-door” policy, which allows for two-way communication between staff members and managers. Please respect meetings in progress. We will always do our best to give everyone the time and attention they need as quickly as possible.

Every employee of AmElite has the right to view their personnel file, payroll file and productivity reports on demand. Please ask a manager to retrieve it for you. Copies may be made, but no item may be removed from your files.

Communication between busy staff members can be difficult. Each staff member has a memo box, for personal notes and also for generally issued memos concerning upcoming events and salon policy. It is expected that each staff member will read memos daily, and keep their memo area clear for incoming communication.

On the second Thursday of each month, after the salon closes AmElite will have their regular staff meeting. Our basic format is to review our statistics for the previous month, review last month’s meeting notes and discuss progress, and to bring up any current praises, challenges, or questions. We expect that all staff members will attend and participate in the monthly meetings. When challenges, ideas and questions are discussed monthly, problems get solved, ideas put into use, and everyone can be

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clear about policies. Try to be respectful of your coworkers by being on time, by not interrupting and by keeping contributions concise.

Evaluations and productivity meetings are also your personal time to discuss with management any challenges you’re experiencing. Feel free to ask questions or get advice on improvement. We are also able to provide counselling with an outside therapist when staff members are experiencing stress in the workplace. Usually, these sessions are limited in number, and are paid for by the salon. Please see a manager for details.

V. GENERAL POLICIES

We like to regard every staff member as an exemplary member of our public relations staff. In the eyes of our families, friends and the public, each of us is a representative of the entire organization. This places an important responsibility on each of us as long as we are in the organization. Both on and off the job, we all havecountless opportunities to make friends and win goodwill for the salon. Similarly, by thoughtless words and acts, we can blemish the good relations being built up in the community and with our clients. Always present yourself accordingly.

Our personal appearance is a very important aspect of the way we communicate with our clients and the public. The statement we make with our clothing, hairstyle and cosmetics should be a positive one. At AmElite, we encourage a diverse and eclectic style of dress that is professional, yet expressive of our unique and creative personalities. Whenever you are “on the clock” at the salon, we expect you to wear clothing that is neat, coordinated and reflects the image projected by the salon. Staff members will not wear jeans (including black and other colors), dirty or ripped clothing, un-pressed clothing, or anything that might be considered sloppy, haphazard or unkempt. Wearing of questionable clothing to the salon may result in your being asked to change, and repeated violations will result in a Team Member Action Form being given.

Because we work in a public-oriented, fashion and beauty industry, it is essential that we present a professional, fashionable appearance to our customers. Your hair andnails should be clean and well-groomed in styles that are appropriate for our working situation. Cosmetics should be applied before starting work and should not be done at the salon’s cosmetics station. Nails should not be overly long, and attention must be paid to personal hygiene, with special attention paid to breath and body aroma.

Staff members who smoke need to be constantly aware of their personal aroma. The smellof smoke on one’s hands, clothes, hair and breath is extremely offensive to most clients. Smoking is to be done on at the rear of the building, not at the entrance or in view of clients. It is each employee’s responsibility to bring and use their own breath mints (gum chewing is not allowed on the salon floor), and aroma spray for hairand clothing. After smoking, be sure your hands are thoroughly washed and sanitized. Please do not wear the salon’s aprons or chemical smocks while smoking.

The front desk is vital to our daily operations and must remain as uncluttered as possible. This is a client’s first and last impression of our salon and it should not be one of sloppiness and disorganization.

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The front desk is the work station of the salon coordinators, and we require that you respect their space. If you answer the phone, remember that our salon greeting is always, “Thank you for calling AmElite Hair Design, this is (name), how may I help you?” When placing a client on hold, always ask, wait for a positive answer, and then place them on hold.

Staff members will not be interrupted while working on clients to take personal phone calls unless they are of an emergency nature. Messages will be taken for personal calls at the front desk. Return phone calls using the front desk’s cordless phone. Personal calls must be kept under three minutes. Staff members receiving excessive or disrupting personal calls will lose phone privileges. Excessive is defined as more than 1-2 incoming calls per day. Disruptive is defined as calls that tie up the front desk’s phone lines and/or time taking messages.

All salon clients fill out a client information sheet for tracking and mailing purposes. Please help keep your client’s information updated as to name, address and phone number changes, and make sure their birthday, service codes and history are entered. All client information is the property of AmElite, and is only for your use while you are in the salon’s employ. Employees who self-terminate or are let go will have absolutely no access to client information from computer files, appointment books, or sales tickets. Any staff member accessing, copying, or printing any information belonging to AmElite (or doing so for a former employee), including printed material, advertising material, computer files, disks, forms, manuals, etc. without express written permission, will be considered to be committing theft, and will be terminated and/or prosecuted.

It is expected that all staff members will be responsible for keeping their own work spaces spotlessly clean at all times. Providing excellence in service includes an atmosphere that is pleasing to all. We expect every member of our staff to additionally contribute to the overall cleanliness of the salon, the dispensary and the office. Don’t delegate if you have the extra moment- be a team player and get the job done! Areas that should be paid special attention on a client-to client basis are:hair in the shampoo bowl traps, cleanliness of the sinks, the drawer of your roll-about and its contents, perm supplies and color bowls, and the general cleanliness of your station. Because we sometimes alternate stations to maximize service throughout the day, your station should always be in a condition to be used by others. Our salon is inspected at random by the Ministry of Ontario Board of Cosmetology. Your tools andsupplies should always be in a state that would cause no violations in an inspection.

Violations of the provincial laws of sanitation caused by a staff member will be takenout of your pay cheques, if they result in a fine. If you have questions about proper storage of tools, ask a manager for a copy of the provincial regulations. To protect our salon from sanitation violations, we will perform surprise inspections of roll-about drawers. Failure to keep your tools and work station in a sanitary manner will result in a Team Member Action Form. Because we sometimes share stations, and to keep a clean look to our work areas, we ask that no personal items be displayed on your work station.

We feel that to be a professional you must have the proper tools, in good working order. Items you will bring (or purchase) include scissors, texture or thinning shears, razor, clippers and guards, blow dryer, combs, clips, brushes and irons. The salon provides neck trimmers, capes and smocks, razor blades, perm rods, towels and

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chemical solutions. Also provided are styling products for shared use. Please do not remove retail products from the shelves for use on clients without first checking withthe manager. We discourage borrowing of tools unless you have a specific agreement with a co-worker. No one likes to be responsible for breaking or losing someone else’sproperty.

While we do not forbid working outside the salon, there are a few guidelines which must be followed. Other work activities must not interfere with your obligations and responsibilities at AmElite Hair Design, including having enough rest to perform at your best. It is asked that you inform a manager of the location and nature of any outside employment. This and other personal activities will only be of concern to the salon ifthey detract from your ability to perform your job well at AmElite, or a conflict of interest arises regarding confidentiality of information or customer confusion arises between the two jobs.

It is expected that all of your paid work on hair be done at AmElite Hair Design.

This manual is subject to changes and updates at the discretion of Rita Culley. Any memos which are issued as revisions or additions to the policies and procedures of AmElite Hair Design are considered to become a permanent part of this manual. Updated: 2013.

Appendix H

Sample Job PostingJob Title: Hairdresser

Employer: AmElite Hair Design

Main Duties:

Suggest hair style compatible with client’s physical features;

Determine style from client’s instructions and preferences; Shampoo and rinse hair; Cut, trim, taper, curl, wave, perm, and style hair; Apply bleach, tint, dyes or rinses to colour, frost or

streak hair; Analyze hair and scalp condition and provide basic treatment

or advice on beauty care treatments for scalp and hair; Train or supervise other hairstylists, hairdressers, and

assistants/apprentices

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Handle all methods of payment (cash, credit, debit sales); through use of cash register and credit/debit machine

General salon maintenance/clean-up duties

Job Requirements:

Completion of High School Certificate of Qualification Certificate of Apprenticeship (if no Certificate of

Qualification) Minimum two years of industry experience Provide references upon request

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Appendix I

Layout/Floor Plan

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Appendix J

Loan Calculator

Loan Amount $60,000.00# of Payments 32Annual Interest Rate (%) 4.0%Payment Amount ($) $2,000.00Compounding Frequency MonthlyPayment Method ArrearsAmortization Method NormalTotal Interest ($) $4,000.00Total Principal & Interest ($)

$64,000.00

Source: Loan Calculator. http://www.pine-grove.com/online-calculators /loan-calculator.htm

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Appendix K – Financial Statements

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Endnotes

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i Google. Maps. https://google.maps.ca (April, 2013)

iiCanada Business. http://v1.canadabusiness.mb.ca/home_page/business__dream_it/what_business_should_you_start/starting_a_beauty_salonbarber_shopestheticstanning/ (2012)iii

Canada Business. http://v1.canadabusiness.mb.ca/home_page/business__dream_it/what_business_should_you_start/starting_a_beauty_salonbarber_shopestheticstanning/ (2012)

iv Service Canada, “Hairstylists and Barbers,” (2012), http://www.servicecanada.gc.ca/eng/qc/job_futures/statistics/6271.shtml (accessed March, 2013)

v Working Canada. http://www.workingincanada.gc.ca/report-eng.do?area=9219&lang=eng&noc=6271&province=35&display=regulated&s=2#report_tabs_container2

vi Service Canada. http://www.servicecanada.gc.ca/eng/qc/job_futures/statistics/6271.shtml (2013)

vii Generation 5, http://exploreguides.conestogac.on.ca/gen5 (March, 2013)

viii Generation 5, http://exploreguides.conestogac.on.ca/gen5 (March, 2013)

ix Generation 5, http://exploreguides.conestogac.on.ca/gen5 (March, 2013)

x 2013 Canadian directory of shopping centres a Monday report on retailer’s publication Copyright 2012 Rogers Media Inc.

xi Region of Waterloo. Population Estimates. http://www.wonderfulwaterloo.com/showthread.php?t=80xii

Wally Escott. Speedpro Imaging. (Quote). http://www.speedprotgt.com/xiii

Alex Wood, Owner. Active Marketing. Interviewed: April, 2013. xiv Metroland Media, “Gross Alphabetical Modular Rate Card,” (2013), http://media.zuza.com/7/3/73463876-0e84-4c19-a013 e9a04536010b/Gross_Alphabetical_March_2013_w.pdf (accessed April, 2013)xv

Drazen Prica. Vice President. K-W 4 RENT. http://www.kw4rent.com xvi

Wally Escott. Speedpro Imaging. (Quote). http://www.speedprotgt.com/xvii

Alex Wood. Active Marketing. http://www.activemrkting.com/prices.htmlxviii

Wally Escott, Owner. Speedpro Imaging. Interviewed: March, 2013.

xix DaySmart Software, Inc., www.SalonIris.com. (accessed April, 2013)xx

Metroland Media, “Gross Alphabetical Modular Rate Card,” (2013), http://media.zuza.com/7/3/73463876-0e84-4c19-a013 e9a04536010b/Gross_Alphabetical_March_2013_w.pdf (accessed April, 2013)xxi

Mel Metzger, Administration. St. Jacobs Printery. Interviewed: April, 2013xxii

Drazen Prica, Vice President. K-W4Rent. Interviewed: April, 2013xxiii

https://www.cosmoprofbeauty.com/Landing.aspxxxiv

Matrix Canada. http://www.matrixcanada.ca//professional-site (accessed April, 2013)xxv

Generation 5, “AmElite Hair Design – Business Plan,” G5 Allocate. CD-ROM. (Orange,CA: Aleryx, 2013), http://exploreguides.conestogac.on.ca/gen5 (accessed March, 2013)xxvi

Corey Rudy, Owner. Core Contracting. Interviewed: March, 2013. xxvii

CosmoProf Beauty. https://www.cosmoprofbeauty.com/Landing.aspx (accessed April, 2013)xxviii

Employment Ontario. www.ontario.ca/jobfutures. Queen’s Printer for Ontario, 2009 xxix

Waterloo Region Small Business Centre, “Register a Business,” (2013), http://www.waterlooregionsmallbusiness.com/Register-a-Business.htm (accessed April, 2013)xxx

Fiscal Office. “Vendor Licensing”. Fiscaloffice.summitoh.net/index.php/vendor/licensing xxxi

The City of Waterloo, “Building and Renovating,” (2012), http://www.waterloo.ca/en/living/buildingandrenovating.asp (accessed April, 2013) xxxii

Canada Business. http://v1.canadabusiness.mb.ca/home_page/business__dream_it/what_business_should_you_start/starting_a_beauty_salonbarber_shopestheticstanning/ (2012)xxxiii

Dave Toll, Owner. Toll Insurance Agency Inc. Interviewed: March, 2013

xxxiv Loan Calculator. http://www.pine-grove.com/online-calculators /loan-calculator.htm (April, 2013)

Bibliography

Industry/Market Analysis:

CMBSC Business Service Centre, “Starting a Beauty Salon/Barber Shop/Aesthetics/Tanning,” (2007), http://v1.canadabusiness.mb.ca/home_page/business__dream_it/what_business_should_you_start/starting_a_beauty_salonbarber_shopestheticstanning/ (accessed March, 2013)

Canadian Directory of Shopping Centres, “A Monday Report on Retailers Publication,” (2012), www.mondayreport.ca/mondayreport/PDF/SCDBrochure.pdf (accessed March, 2013)

Generation 5, “AmElite Hair Design – Business Plan,” G5 Allocate. CD-ROM. (Orange, CA: Aleryx, 2013), http://exploreguides.conestogac.on.ca/gen5 (accessed March, 2013)

Service Canada, “Hairstylists and Barbers,” (2012), http://www.servicecanada.gc.ca/eng/qc/job_futures/statistics/6271.shtml (accessed March, 2013)

Wonderful Waterloo, “Region of Waterloo Population Estimates,” (2009),http://www.wonderfulwaterloo.com/showthread.php?t=80 (accessed April, 2013)

Working in Canada, “Explore Careers – Job Market Report,” (2013), http://www.workingincanada.gc.ca/reporteng.do?area=9219&lang=eng&noc=6271&province=35&display=regulated&s=2#report_tabs_container2 (accessed March, 2013)

Marketing Plan:

Alex Wood, Owner. Active Marketing. Interviewed: April, 2013.

DaySmart Software, Inc., www.SalonIris.com. (accessed April, 2013)

Drazen Prica, Vice President. K-W4Rent. Interviewed: April, 2013.

Mel Metzger, Administration. St. Jacobs Printery. Interviewed: April, 2013

Metroland Media, “Gross Alphabetical Modular Rate Card,” (2013), http://media.zuza.com/7/3/73463876-0e84-4c19-a013 e9a04536010b/Gross_Alphabetical_March_2013_w.pdf (accessed April, 2013)

Wally Escott, Owner. Speedpro Imaging. Interviewed: March, 2013.

Operations/H.R.:

Corey Rudy, Owner. Core Contracting. Interviewed: March, 2013.

CosmoProf Beauty. https://www.cosmoprofbeauty.com/Landing.aspx (accessed April, 2013)

Dave Toll, Owner. Toll Insurance Agency Inc. Interviewed: March, 2013

Matrix Canada. http://www.matrixcanada.ca//professional-site (accessed April, 2013)

Marlo Beauty. http://www.marlobeauty.com/resources/salon-policy-manual(accessed April, 2013)

Pine Grove Software, “Loan Calculator – Payment Calculator,” (2013), http://www.pine-grove.com/online-calculators/loan-calculator.htm (accessed April, 2013)

The City of Waterloo, “Building and Renovating,” (2012), http://www.waterloo.ca/en/living/buildingandrenovating.asp (accessed April, 2013)

Waterloo Region Small Business Centre, “Register a Business,” (2013), http://www.waterlooregionsmallbusiness.com/Register-a-Business.htm (accessed April, 2013)

Financials:

Loan Calculator. http://www.pine-grove.com/online-calculators/loan-calculator.htm (accessed April, 2013)

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