BY: Nicole Robinson, Faithe Pitts, and Abby Blatz
6 Business Activities
1. Generating Ideas: Are you looking for a change in your hairstyle for the new season? Our business, Classic Cuts is the place to go for great, unique, and hip hair styles. We have developed a hair styling business that no other can compete with. We offer crazy, custom cuts that no other shops will have, along with bright, rich, and fresh coloring for your new look. Our staff is friendly and will make you feel at home and you will leave looking like royalty.
2. Raising Capital: To establish Royal Cuts our three owners each contributed $5,000. With that not being quite enough we still needed to take out a $35,000 loan. At a total of $50,000 we had just enough money to pay for the equipment, interior design, and employees of Royal Cuts.
3. Employee & Training: To recruit our employees, we took the best out of our towns and sat down to interview them. The people we interview, have to be a loyal worker and a royal worker. Also to hire them, we had to see if they could handle what brought to the table. So, we went to the University of Spa and Cosmetology Arts (USCA) and picked out the best of the best to exceed in our business and help it grow. Training wise, we took our rookies to Everett's Natural Salon & Beauty School so that our future employees could get the preparation they needed.
4. Buying Goods & Services: To start our business some items had to be purchased before we could start our services. We purchased 4 cutting chairs for $326.64, along with 3 shampooing chairs and sink for $476.64 off Ebay. Also off Ebay we purchased 3 portable hood dryers. The total cost for the dryers was $300. We bought wall cabinetry from Lowes for a total of $496. We bought one wall storage item from IKEA that cost us an additional $330. Furthermore we had to purchase the supplies in order to perform our magic. We bought a variation of supplies from Folica.com. Such as color, combs, brushes, shampoos, conditioners, sprays, chemical treatments, flat irons, curling irons, blow dryers, clippers, scissors, and capes. The total cost of the supplies was around $400. Although some of the things may need to be renewed more frequently than others, this is enough supplies to get us through the first 4 months of business.
5. Marketing Goods & Services: To market Royal Cuts, we’ve put advertisements in newspapers, and magazines. We also have radio commercials on 103.7, 101.9, and 99.7. Another advertisement we’ve done is create our own website. Altogether these advertisements cost around $10,000, however they have helped our business massively and brought in profits.
6. Maintaining Business Records: Royal Cuts will track orders and payments by putting gps in our products that we buy so we know when and where our packages are. For customer information we will have a schedule book with each stylists customers information and when their appointments are and that is what we will submit to the government for our taxes.
Sole Partnership/Advantages and Disadvantages
We chose a partnership for our business entry. We chose this route because with the partnership the business would be owned by all three of us, and our responsibilities and key decisions would be divided among us. The partnership was easy and simple to start up, with a simple signature, our hair styling kingdom was up and running. As a partnership we share both investments and profits therefore the cost and expenses are not put off onto only one person.
Some advantages of a partnership is two or more people contribute the investment. Also with this form of entry there is a variety of opinions and outside expertise. This can also be good when making important business decisions, each partner is responsible for the decisions made by all partners. As all things, there are some disadvantages as well. There are no protection for personal assets. Also if a partner leaves or dies the partnership is dissolved. With a partnership it is important to realize that the people share investment, management, share risk, as well as rewards.
Our number one goal is to make our customers happy and satisfied.
Pay of our $35 thousand dollar loan off.
Grow as a company, and hire multiple employees.
Open up our own line of Royal hair products “Fit for a Queen”.
- Have multiple locations across the country.
Our mission is to satisfy all of our customers making them feel like royalty. We try to have a very professional environment. We offer trendy custom cuts as well as stylish hair colors. Our licensed hair stylist off their skills and ideas in new hair styles, cuts, and colors.
Our goal is to tailor the client’s experience with Royal Cuts based on feedback after their appointments to ensure the client’s satisfaction and increase repeat business. We are mindful of the overall experience and opinions of the clients- using top of the line products, and styling their hair to their highest liking. Hairstyle magazines are placed throughout the spa to help clients choose their new look to ensure that they leave Royal Cuts Salon feeling better than ever but most importantly like royalty.