BUSINESS PLAN

Mac & Milan

Hair and Make Up Bar

308 Portobello High Street

Edinburgh
EH15 2DA

Prepared by Julie De Gaetano

20 February 2016
1.0 Executive Summary

Mac & Milan Hair and make up bar is a full service hair salon and make up bar with an HD
brow bar. We are dedicated to consistently providing high customer satisfaction by
rendering excellent service, quality products, and furnishing an enjoyable atmosphere at
an acceptable price/value relationship. We will also maintain a friendly, fair and creative
work environment, which respects diversity, ideas and hard work.

Our Mission : To supply services and products that enhance our client's
physical
appearance and wellbeing.
Our Motto : Enjoy the experience and leave feeling the best you can
Julie De Gaetano has over 10 years experience in the beauty industry. Davide De
Gaetano, her husband, and co-owner has had experience in running his own business for
over 15 years.
Julie has her own beauty salon which has been running for two years, and previously for 6
years from the house, which has proven successful and has a staff of four, not including
Julie. Julie has created a good clientbase through hard work and dedication.
Julie and her team of hair and make up specialist have what it takes to make this venture
an extremely successful one. We expect our growing reputation to lead to new clients and
make use of our existing ones.

The keys to success in our business are:

Location : Providing an easily accessible location for customers. We are

situated in an upmarket, quiet part of Portobello with plenty of parking.
Environment : Providing an environment condusive to giving a relaxing and
professional service.
Convenience : Offering clients a range of services in one setting,, one location and
extended business hours to accommodate clients.
Reputation : The owner and other hair, make up and brow specialists already
have a reputation for providing superior personal service with top quality products.

2.0 Products and Services

Mac & Milan Hair and Make Up Bar will be providing both services and products to better
meet our customer needs. Only high quality and well known branded products will be
used. We want to give the feeling of a city centre centre salon.

2.1 Services
Mac & Milan Hair and Make Up Bar is considered an upscale, full service hair, make up
and brow bar. We offer a wide range of services that include:

HAIR

Cuts, colours, shampoo, conditioning, curling, extensions, waving, we will also be offering
a Blow Dry Bar in which the client will have a menu of different hair ups or hairstyles to
choose from, we will also combine this with the option to have their make up done as well,
something that Portobello has not see. Our target market is aimed at men and women, we
would like to offer mens grooming including beard trimming.

MAKE UP

We will be offering a stand alone make up which will be bridal, night out and occasion. At
the weekend we will offer a hair and make up package, targetting the younger client. We
also wish to offer make up classes through our quieter times, contour classes and bridal
events.

BROW BAR

HD Brows are extremely popular and we will provide a dedicated Brow Bar in which Julie,
the Owner, and one other Brow Stylist will work. This treatment includes, designing the
brows, waxing, tinting, threading, tweezing to get the desired shape the client wishes to
achieve.
We also wish to offer microblading, this treatment involves semi-permanent make up for
clients who want a better shape and their brows do not grow in to the desired shape.

NAIL ENHANCEMENTS

We will offer nail enhancements, for example, acrylics, sculptured nails and gel
extensions.

2.2 Products

Mac & Milan will, upon commencement of operation, sell a range of hair and brow
products. We will be providing quality hair and brow products. We will be using HD Brows
as our product for our brow clients, which has a large celebrity following, and is a reputable
provider and is well branded. We will also be using L'Oreal hair products which we aim to
gain an exclusive contract with to use and sell their top quality products. In addition we will
have other name-branded products for sale to meet our clients needs. These products will
include shampoos, conditioners, hair wax and styling products and other such hair
products. We will also retail our HD Brow products such as brow pencils, brow pallets and
hair growth products. We will set Mac & Milan apart from the competition is our
commitment to providing all of these products and services in one convenient location.

2.3 Pricing

The brand name hair products will range in cost from £10.00 to £100.00 (for products such
as straighteners). These costs will not vary from other competitors as there is a standard
price that salons may charge for these products. Our mark up is approximately 50%.
Our hair services will average £50.00, with a range of £20 for a blow dry to £98 for a ladies
cut, blow dry and full head of highlights. Hair Extensions will obviously be more expensive
up to £350 to £400. We will only the best quality and branded hair extensions.
3.0 Market

The beauty and hair industry is economically stable and more and more people are
spending more money on their appearance than before. The younger market that we are
also targetting now spend more on their hair and make up for a regular weekend night out.
It is getting more and more popular. Industry trends show that as time becomes more
limited, people want faster, easier and more economical services all in one location. The
popularity of getting blow dries for nights out or even twice weekly blow dries for the busy
business woman is increasing with a couple of dedicated Blow Dry Bars opening up in the
city centre. The concept is big in London and is slowly making its way to Edinburgh.
Although we do want to offer Blow Dry services we also want to offer hairdressing as this
is where the profit is.
What makes Mac & Millan different to the other hairdressers in Portobello is that we offer
hair services but with the addition of our blow dry services coupled with make up services.
The all in one salon, where you can have your hair and make up done prior to going out on
the town for a reasonable price. Our salon will be stylish and up to date and also offer HD
brow services.
Our target area is Portobello immediately, however we do foresee including Musselburgh,
Dalkeith and the surrounding area of Portobello, Duddingston and further afield.

3.1 Competitive Summary

Mac & Milan wants to set itself apart from other hair salons that may offer only one or two
types of service. We want to offer hair, make up and brows in one location and to make it
an experience. Young, fun and on trend. Julie realised from talking to clients that they
desire all of the services we're proposing in one place, so that a night out is getting home
after being at Mac & Milan and all you have to do is put on your dress. For the clients who
wish to have their hair cut and coloured at Mac & Milan, we aim to give them a comfortable
few hours that they can relax in a nice salon with a friendly team and walk out feeling the
best they can feel. All at an affordable cost and not paying city centre prices but the feel of
a city centre salon.

3.2 Advertising

Our advertising strategy is a simple one : satisfied clients are our best marketing tool.
When a client leaves our business with a new look, he or she is broadcasting our name
and quality to the public. Most of our clients will be referrals from existing clients.
We will also be hosting a launch evening in which we will be offering discounts and
incentives to come to Mac & Milan. We will also have editorial advertising, possibly of the
launch.
We have two experienced hairdressers joining the team and we count on at least between
50 and 70% of their clients following them as they have been loyal for years. Julie, as
someone who gets their hair coloured and cut regularly herself would follow a hairdresser
and would stay loyal to them as a good hairdresser is rare. Word of mouth is the best
advertising for this business.
We will reward loyal clients following our two hairdressers initially. Also recommending a
friend will be another special we will run, to reward the client and the friend.
We will rely a lot on social media, we have already started up a page for facebook and
instagram. We will post a lot of the pictures on instagram and facebook as this is where a
lot of people like to look at different styles of hair and make up. We will also run a
competition initially offering £100 for the winner to spend in salon. This will be through
social media to gain a greater audience prior to opening.

3.3 Customer Profile

Julie's typical client will be

- Between the age of 20 and 50
- Female and male however predominantly female
- Younger girls prior to nights out wanting their hair and make up done
- Looking for reasonably priced services with a high level of luxury
- Wanting the convenience of having hair and make up in one place, for a special
occasion.
- Wanting a high end salon with the convenience of parking without going into
town.

4.0 Supplier Summary

All of the major supplies, combs, haircare products, towels, capes etc will be purchased
from Salon Services which is conveniently located in Leith. We are looking to get L'Oreal
products in so they will provide our retail stock and shampoos and conditioners etc. We
look to be opening an account with L'Oreal and once a credit rating is established the
account would be payable every 30 days. HD Brows will be the provider for our Brow Bar.

4.2 Location

The salon will be located on Portobello High Street in Edinburgh. The salon is roughly 50
square feet. The location of the salon is ideal as it is situated in the quieter side of
Portobello, Joppa with easy parking.

4.3 Employment Overview

There will be initially two hair stylists employed, one who will be the Manager of the salon.
I would have another two hairdressers, on a self employed basis paying £300 per week,
however I would like the two stylists initially to build up a client base then bring in more as
we get busier.
We will also have a self employed make up artist who will be paying £200 per week.
We will also require a Saturday Junior who will help with washing hair etc. Additionally
Julie De Gaetano, owner, will be working at the Brow Bar. A nail technician will also be
required on a self employed basis at £250 per week.
Our make up artist will also work on a percentage basis.

4.4 Regulations

Mac & Milan will be operated in strict guidance with the health and safety codes.

4.5 Insurance Coverage

The insurance that will be needed for the salon will be through R & Q Commercial Risk
Services Ltd via Gresham Underwriting Limited.

5.0 Management Summary

Mac & Milan Hair and Brow Bar will be organised and managed in a creative and
innovative fashion to generate high levels of customer satisfaction. This will also create a
working climate conductive to a high degree of personal development and economic
satisfaction for employees.

Julie De Gaetano

Owner
Julie has been a Beauty Therapist for 10 years. After studing at Mary Reid School of
Beauty, she quickly developed the trade skills that have led to her success. Julie worked
from home for eight years and built up a good client base. After working from home, Julie
decided to buy a salon which is now called 'At The Coast' and has been running
succesfully for two years now. She loves dealing with people, and has the drive, ambition
and discipline to manage the business and it s employees.

Davide De Gaetano

Co-owner
Davide has his own company A & D Leisure Ltd which has been trading for 12 years
nnow. He has extensive experience in managing people and businesses.
Mac & Milan will be operated as a partnership between Julie and her husband. Julie's
responsibilities will include co-managing with the manager the overall daily routines of the
business, working two days a week at the brow bar, dealing with all human resource
issues, and working on reception where required.
Davide's responsibilities will be all of the financial matters related to the business.

6.0 Action Plan

Mac & Milan will open on 1 October 2016. To begin with the salon will concentrate on the
marketing aspect to target new clientele. We expect to service approximately 50
customers per week for hairdressing, an average of 5 customers per day between the two
hair stylists. It is expected that approximately 10 customers a week wil use the nail bar,
and approximately 16 customers per week for the make up artist. For the brow bar we
expect an average of 15 customers per week.
As the client base increases, the salon would expand to add another two hairstylists, one
receptionist and another HD Brow Stylist.