Barrett’s Beauties Boutique

Organizational Assessment

Ieshia PriceBarrett
MBA645  MINOR PROJECT 2
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Company Analysis: SWOT Analysis

Strengths  Barret’s Beauties provides a pleasurable experience for clients
seeking services for hair replacement, hair loss, protective
styles, hair extensions and custom wigs in a one-on-one setting.
 100% of the patrons that visit Barrett’s Beauties Boutique Hair
salon purchase hair extensions and hair installation services.
 Having a staff of one allows perfect conditions to establish a
management assessment plan.
 The startup capital and inventory to develop the hair extension
line are minimum and can be raised without a loan.
Weaknesses
o Retail sales in the salon current stand at 2% of total revenue.
o Clients purchase wigs and hair accessories from other retailers.
o We know we do not have the capacity to compete with big
players in the industry.
o Staff only consist of the owner.
o There are no technology limitations that may delay the
development of the new hair line.

Opportunities  Increasing salon revenues with the hair extension expansion.

 While there are thousands of hair extension merchants currently
in place, the barriers for entry of the new product into the hair
industry market remain favorable.
 Raising brand awareness
 Creating a brand identity and positive brand association
 Improving communication and interaction with future clientele
and staff.
 To expand into a brick-and-mortar retail space.
 Atlanta is the epicenter of hair extensions, wigs, and weaves
and the salons established clientele.
Threats  The company will provide better Quality hair products than the
local beauty supply store however the small firm cannot
compete with their many locations and habitual consumer
behavior.
 The competition has mass amounts of inventory and an
established online presence.
 The boutique will need a management assessment in place for
future employees and organizational goals.
 Additional Staff is needed should the clientele grow from the
hair vending expansion.
 The boutique will need to relocate from the home into a retail
space and acquire overhead costs.
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TOWS Matrix
SO Strategies
Strength 100% of the patrons that visit Barrett’s Beauties Boutique Hair salon
purchase hair extensions and hair installation services.
Opportunity While there are thousands of hair extension merchants currently in place,
the barriers for entry of the new product into the hair industry market
remain favorable.
WO Strategies

Weakness Retail sales in the salon current stand at 2% of total revenue.

We know we do not have the capacity to compete with big players in the
industry.
Opportunity Increasing salon revenues with the hair extension expansion.
the prices and quality of all the hair extension products that are available
in our boutique are competitive with what is obtainable amongst hair
extension stores within our level. We offer the added bonus of private
customer consultation from a professional.
ST Strategies

Strength Having a staff of one allows perfect conditions to establish an assessment

plan for future management.
Threat Additional Staff is needed should the clientele grow from the hair vending
expansion. Furthermore, the boutique will need a management assessment
in place for future employees and organizational goals.
WT Strategies
Weakness The time frame of service.
Threat The company will provide clients with detailed bill of fare that will
convey price as well as expected time frame.

Sunday Monday Tuesday Wednesday Thursday Friday Saturday

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Departmental Analysis
I am the sole owner and operator of the salon and hair boutique and therefore will be
responsible for all duties. For the past two years I have successfully managed my clientele and
their many needs. I will use the same determination for success to embark on the new expansion
as well. The current location of the salon deems it unnecessary to hire more stylist and will
instead use the retail expansion as an additional income to eventually expand to a retail space.
The following is a chart of the current salon operation and tasks.

Schedule Legend
Service customers
Post Hair variety Videos
Post Live Demos and Q&A
Post Before/After Photos
Post Hairstyle Videos and Photos
Post How to Videos
Ship and Deliver orders
Measure viewers
Prepare content
Schedule appointments and Process orders
Make Adjustment to plans and strategies
Human Resources
The future of Barret’s Beauties boutique will lie in the acquisition additional stylists and
administration. The following chart will display the type of employee and the skills set the
future applicant will need to join our team.
Administrative
Chief Executive Officer-(self)
Drafts the overall strategic vision on how the company would be run.
Meets and negotiates with customers on behalf of the company.
Draft an overall budget on behalf of the company.
Salon Manager-(self)
Mange overall facilities to include customers and employee satisfaction.
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Hire, train, supervise, promote, and terminate employees.

Ensure all licensing, and legal documents are up to date.
Completes all employee schedules, benefit packages and performance evaluations.
Sales and Marketing Team-(self)
Creates effective marketing and sales strategies intended to attract as well as retain customers for
Barrett’s Beauties Boutique Boutique.
Develops and implements a workable marketing budget in line with the company’s policies.
Purchasing Manager-(self)
Responsible for sourcing for reliable vendors and placing orders on behalf of Barrett’s Beauties
Boutique Boutique.
Ensures that all orders and contracts with vendors are properly negotiated, updated, and reviewed
on behalf of the company.

Position and Skill Set Summary Table

Type of Functions Knowledge Skills Abilities

Employe
e

Salon Mange overall Most Motivating, Georgia laws states

Manager facilities to occupations in developing, that one must become
include customers this zone and directing certified to practice
and employee require training people as through the State
satisfaction. Hire, in vocational they work, Board of
train, supervise, schools, related identifying Cosmetology and
promote, and fire on-the-job the best Barbers by obtaining a
employee. Ensure experience, or people for the Master Cosmetology
all licensing, and an associate job. License.
legal documents degree.
are up to date.
Completes all
employee
schedules, benefit
packages and
performance
evaluations.
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Stylist Inspect and Most Providing Georgia laws states

analyze hair, skin, occupations in cuts, color, that one must become
and scalp to this zone and styles to certified to practice
recommend require training upscale through the State
treatment. Discuss in vocational clients in a Board of
hairstyle options. schools, related timely Cosmetology and
Keep on-the-job fashion, Barbers by obtaining a
workstations experience, or while Master Cosmetology
clean and sanitize an associate displaying License.
tools, such as degree. supreme
scissors and customer
combs. Bleach, service.
dye, or tint hair, Additional
using applicator duties include
or brush. Cut, managing
trim and shape client’s files,
hair or hairpieces, retail sales,
based on and product
customers' demos
instructions, hair
type, and facial
features, using
clippers, scissors,
trimmers, and
razors. Schedule
client
appointments.
Update and
maintain
customer
information
records, such as
beauty services
provided.
Salon Answers calls and Most A salon Georgia laws states
Assistant prep clients for occupations in assistant, that one must become
their services. this zone often times a certified to practice
Clean and require training graduate of through the State
disinfect all tools in vocational cosmetology, Board of
and work areas schools, related or barbering Cosmetology and
on-the-job school, is an Barbers by obtaining a
experience, or employee Master Cosmetology
an associate who is License.
degree. looking for
more salon
experience
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and learning
opportunities.
Shampooer Massage, These Georgia laws states
shampoo and occupations that one must become
condition patron’s require a high certified to practice
hair and scalp to school through the State
clean them and diploma. Board of
remove excess Cosmetology and
oil. Advise Barbers obtaining a
patrons with shampooer certificate
chronic or
potentially
contagious scalp
conditions to seek
medical
treatment.
Maintain
treatment records
Receptionist Receive all These
incoming calls, occupations
schedule require a high
customer school diploma
appointments, and
tender payments
from clients as
needed.

(O*Net Online, 2020)

Accounting
Description Explanation

Start-up Cost

Inventory $1,500  500 bundles of premium hair @ $30 per bundle

Supplies& Packing $200 Hair bags, envelops
Total $1,700 

Expenses

Tools & Software $100 Cost covers three years of tools and software
Marketing and $405 Facebook ads and social media campaigns
Advertisement
License & $200 Licenses for business
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registration License for hair vendor

Delivery $0 The fee for delivery will roll over to the customer as they make
orders online. There will be no fee to pick up products at the
boutique.
Miscellaneous $1,000  This will cover any unexpected cost, refunds, or other problems
that may arise.
Total $1,705 

Total $3,405  startup cost& expenses

Finance
Description Explanation

Start-up Cost

Inventory $1,500  500 bundles of premium hair @ $30 per bundle

Supplies& Packing $200 Hair bags, envelops

Total $1,700 

Expenses

Tools & Software $100 Cost covers three years of tools and software

Marketing and $405 Facebook ads and social media campaigns

Advertisement

License & $200 Licenses for business

registration License for hair vendor
Delivery $0 The fee for delivery will roll over to the customer as they make
orders online. There will be no fee to pick up products at the
boutique.
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Miscellaneous $1,000  This will cover any unexpected cost, refunds, or other problems
that may arise.
Total $1,705 

Total $3,405  startup cost& expenses

Marketing & Advertising

•Social Media Content Planning: Barrett’s Beauties Boutique will consider keyword research
and competitive research to help brainstorm content ideas that will interest your target audience.
The business will also look to what other businesses in the industry are doing to drive
engagement on social media.
•Great Social Content: Barrett’s Beauties Boutique will stay consistent with other areas of
online marketing, content reigns supreme when it comes to social media marketing. Posting
regularly and offering truly valuable information that ideal customers will find helpful and
interesting.
•A Consistent Brand Image: Using Facebook for marketing enables the business to project our
brand image across a variety of different social media platforms. Once you build a loyal
following on social media, you will be able to post all your new content and make sure your
readers can find new stuff right away. Plus, great blog content will help you build more
followers. While each platform has its own unique environment and voice, our business’s core
identity, will stay consistent(Social Media Marketing for Businesses, n.d.).
•Sharing Curated Links: Barrett’s Beauties Boutique will also use the platform as an
opportunity to link to outside articles as well. Curating and linking to outside sources provide
valuable information my target audience will enjoy as well as, improve trust and reliability, and
may even get some links in return.
•Tracking Competitors: It is always important to keep an eye on competitors—they can
provide valuable data for keyword research and other social media marketing insight(Social
Media Marketing for Businesses, n.d.)! If our competitors are using a certain social media
marketing channel or technique that seems to be working for them, Barrett’s Beauties Boutique
will be considering doing the same thing, but do it better.
•Measuring Success with Analytics: You cannot determine the success of your social media
marketing strategies without tracking data. Google Analytics can be used as a great social media
marketing tool that will help Barrett’s Beauties Boutique to measure our most triumphant social
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media marketing techniques, as well as determine which strategies are better off abandoned.
Barrett’s Beauties Boutique will attach tracking tags to our social media marketing campaigns so
that the firm can properly monitor them.

Percent of customers that

buy wig and human hair Sales
accessories for hair loss or
medical reasons
15%

Percent of customers that

buy wig and human hair Percent of customers that
accessories for protective buy wig and human hair
reasons accessories for aesthetic
25% reasons
60%
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Barrett 's Beauti es Social Media Budget

Content Creation Software & Tools Paid Advertising

Paid Partnerships Community Management Campaings and Promotions

Operations
The following charts explains Services offered by the boutique as well as the time it takes
the time it takes for each service our guest may need in one setting. This allows time and
price to be determined during scheduling and consultation.
SERVICES Prices Time Allocated
Customer consultations $20 10- 30 minuets
$50 30 min- 1 hour
Installation services $100 and up Wig installation 1.5 hours
$200 and up Sew in 3 hours
$150 and up Partial sew in 1.5 hours
$600 and up Micro links 4-6hours
Pre installation services $20 Shampoo& blow dry .5 hour
$30 Braid for installation services 1 hour
$20 Wig cap melt .5 hour

Conditioning/Scalp treatments $25 and up Medical Treatments 10 min

$20 Scalp manipulation 10 min
$30 Scalp oil treatment 10min
10 min
$20 Ultimate conditioner treatment
20min
$20 Extreme conditioner treatment 20 min
$10 Maintenance conditioner treatment 10 min
$10 and up Hair extension conditioner treatment 10 min – 1 hour
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$10 Hot oil treatment 10 min

$5 and up Edge control treatments 5 min
Styling $5 and up Edges 15 min
$20 Lace front upkeep .5 hour
$20 Hair cuts .5 hour
$25 Styling .5 hour
.5 hour
$50 Ponytails
1 hour
$30 and up Braids 1 - 6 hours

RETAIL
Human and synthetic custom-made lace $600 and up
front wigs
Human and synthetic lace front wigs $100 and up
Human and synthetic hair units $50 and up
Human hair bundles $50 and up
Synthetic hair packages $80 and up

For example: A customer purchasing a sew- in installation service will require the
following add- on services and experience the described time frame.
Service Time Price Totals
Consultation 10 min $20
Shampoo& Blow Dry .5 hr. $20
Braid For Installation 1hr $30
Services
Wig Cap Melt .5 $20
Sew In 3 hrs. $200 And Up
Styling $25 5 hrs. (time)
Retail Inventory
Human Hair Bundles Customer will need $50 And Up $1,500 (price)
3 bundles for the
service

We will then use this customer as an example to explain an average monthly cash flow for
Barrett’s Beauties Boutique with the hair vending.
The boutique will take in two clients a day and offer services three days a week.
This totals to an average of 24 clients a month
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The above customer purchased $1350 in service sales and $150 in retail sales, totaling
$1500.
24 clients a month @$1500 = $36,000
$36,000 * 12 = $432,000 yearly

Cashflow & Projections

Please click on icon to expand file!

BBB cash flow and

forecast.xlsm

Compensation for the future Salon Employees In the first 3 years the salon will
acquire stylist on a booth rental basis. Charging $150 per week. Stylist rent out the salon chair,
station, mat, and otherwise use of the facilities. The salon does not provide products of clientele
for the booth renter. Upon the fifth year of operating the salon will follow a tiered commission
stylist approach. According to the Business Economics Hair Stylist Compensation Model the
following is an example of one stylist’s paycheck related to $2,300 in sales using a tiered
commission format: The following is an example of how compensation will be calculated for
commission based salaried employees.
Sales Volume                  Commission Rate
         Up to $1,000/Week                      47%
$1,001 – $1,500/Week                 52%
$1,501 – $2,000/Week                 57%
>$2,000/Week                            65%

The key to the above formula is that the commissions are calculated at each tier. If a stylist
earned $1,750 in sales, then the first $1,000 is paid out at 47%, the next $500 is paid out at 52%
and the final $250 is paid out at 57%. Not all of the earnings are paid out at the highest tier level
reached that week (MSA, 2020).  

Benefits and indirect compensation

Barrett’s Beauties Boutique will operate with less than fifty employees and therefore is not
required to offer company-based insurance. However, the salon will be covered with
Liability, property, and professional liability insurance policies.
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Summary
Barrett’s Beauties Boutique offer customers a private professional atmosphere to order
and schedule their hair care needs. This report represents the firm intention to develop an
organizational assessment for the future development of the salon and its new wigs and
hair line accessories expansion. Rising consciousness about appearance among consumers
has created immense opportunity for the hair extensions manufacturers to offer a variety
of products to consumers and will become the goal of Barrett’s Beauties. The firm will
continue to focus on providing custom made wigs for individuals that purchase wigs and
hairpieces for aesthetic purposes and those that purchase cranial prothesis wigs.  The
business is currently trying to meet the demand of its current clientele that are unsatisfied
with their current hair extension purchases made locally as well as online. Barrett’s
Beauties will continue its growth by setting up wholesale accounts with manufacturers and
brands of human hair. While the company has it financial for cast, and start up concerns
under control, the company will need to ensure adequate staffing and space to handle
future demand and its continued growth. As far as the paid advertising and promotion, the
boutique will choose worthy partnerships to promote hair sales as the seasonal shopping
peaks. The cost to partner with some companies can be expensive. However, we found
several companies willing to do so seasonal ads for as little as $15 for the month. The salon
will also budget up to $25 a month for extra advertising and promotion, during the holiday
season. To spark new connections the salon will budget $5 a month and up to $25 a month
for seasonal ads designed for community management and campaign promotions over the
next twelve months. Barrett’s Beauties is willing to spend $405 in advertising to sell 200
units and generate $12,150 in sales.
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