Student Project: Business Plan Competition Entry in Spring 2004

GENTLEMAN INC.

�Make Your Way�

Prepared By: Heather Tomkinson

Erin Hurley Rebekah Leger Chris Gartlan Mike Sattler

Contact: Heather Tomkinson

Box #2550 Babson College Babson Park, MA 02457 [email protected]

This business plan is intended solely for informational purposes to assist you in determining if you wish to proceed with a due diligence investigation of this project. The information is believed to be reliable, but the design team makes no representations or warranties with respect to the information. The projections represent estimates based on extensive research and assumptions are considered reasonable, but are not guaranteed. The contents are confidential and are not to be reproduced without express written consent

GINC.

Table of Contents

1.0 Executive Summary�� 1 2.0 Company Overview

2.1 Company Description (including products and services)��. 4 2.2 History and Current Status��...��. 4 2.3 Competitive Advantages�� 5 2.4 Entry, Growth and Exit Strategy�� 5

2.4.1 Entry Strategy��.. 5 2.4.2 Growth Strategy��.. 5 2.4.3 Exit Strategy��.6

3.0 Industry, Marketplace and Competitor Analysis 3.1 Industry Analysis��. 7

3.1.1 Trends��.. 8 3.2 Marketplace Analysis��.. 9 3.3 Competitor Analysis��.. 12

4.0 Marketing Plan 4.1 Target Market Strategy��.16 4.2 Product / Service Strategy��.. 17 4.3 Pricing Strategy��. 18 4.4 Distribution Strategy��. 18 4.5 Advertising and Promotion Strategy

4.5.1 Stage One��.. 19 4.5.2 Stage Two��.. 19 4.5.3 Stage Three��... 20 4.5.4 Stage Four��. 20

4.6 Sales Strategy��.. 21 4.7 Marketing Financials

4.7.1 Sales and Revenue Forecasts��.. 21 4.7.2 Marketing Expenses�� 22

5.0 Operations Plan 5.1 Operations Strategy��. 23 5.2 Scope of Operations��. 23 5.3 Ongoing Operations��. 25 5.4 Operations Expenses��.. 25

6.0 Development Plan 6.1 Development Strategy��. 26 6.2 Development Timeline ��.27 6.3 Development Expenses��.. 28

7.0 Management 7.1 Management Team��.. 29

8.0 Critical Risks and Contingency Plans 8.1 Internal�� 30 8.2 External��.. 30

9.0 Financial Plan 9.1 Financial Assumptions�� 32 9.2 Financial Forecasts��. 32 9.3 Break � Even and Return on Investment��. 33 9.4 Financial Statements

9.4.1 Financial Assumptions��.34 9.4.2 Statement of Start � Up Costs�� 35 9.4.3 First Year Income Statement��.. 36 9.4.4 First Year Statement of Cash Flows��. 37 9.4.5 Year Two Income Statement and Statement of Cash Flows��. 38 9.4.6 Year Three � Five Income Statements and Statement of Cash Flows�� 39 9.4.7 Years One � Five Balance Sheets��. 40

10.0 Appendices��.41

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1.0 Executive Summary Business Opportunity

Gentleman Inc is a male oriented salon that serves the growing metrosexual population; a population characterized as affluent, young, urban males with money to spend on image and appearance. The corporate minded business man must dress for success in this fast paced world where personal appearance and first impressions are essential to compete1. Male spending patterns support this trend, as they currently represent 49% of the total U.S. spending on haircuts and other personal care services 2 and 29% of spa clients nationwide.3 With 560,000 males currently purchasing grooming products and 360,000 males with high income and executive positions4, the Boston market provides an incredible opportunity to serve the personal care needs of these increasingly image-conscious and underserved men. Traditional spas are oriented towards women, yet primary market research indicates that men do not feel comfortable frequenting these locations. In the metropolitan areas of New York and Denver, male salons have been successfully established. Gentlemen Inc., being the first male-oriented salon and spa located in the Boston financial district, will be able to achieve first mover advantage into an untapped niche market.

Company Overview and Service Description

Gentleman Inc. offers a plethora of high quality, male-oriented services and products provided in one comfortable, convenient location in the financial district of Boston. While traditional salons and spas target females, Gentleman Inc. caters to the increasing demands of the male market to eliminate the discomfort or embarrassment that deters potential male customers from current establishments. Gentleman Inc. provides services in the salon and spa categories. Salon services provide hair care, including cutting, styling, coloring and growth treatments. To supplement these services, hair products will be sold through a retail section of the salon through personal selling by stylists. The spa treatments, which are less traditional for male customers, include nail care, skin care, and massage therapy. Nail care services involve basic manicures and pedicures for the professional males seeking a well groomed appearance. In terms of skin care, professional estheticians will provide waxing for hair removal and facials for stress relief and skin conditioning. No spa would be complete without the full body massage, which offers necessary stress relief for the busy corporate male. Customer service is of utmost priority at Gentleman Inc. A comfortable, masculine atmosphere is established through an old-world style lounge with leather couches and wooden floors. Additional services to complete this relaxing ambiance include a mini-bar, traditional shoe shines and hot shaves, and televisions tuned into sports and business news.

1 Madison, Gail. Proper Appearance is Serious Business. The Philadelphia Inquirer. 2/1/2004. 2 MarketResearch.com Academic. Beauty Salons. 4/1/1997. 3 The ISPA 2003 Spa-Goer Study. http://spas.about.com/library/weekly/aa072503ispastudy1.htm. 9/26/2003. 4 Scarborough Data. Release 1 & 2, 2002, NY: Arbitron Qualitap Software, v. 9.0, 2002.

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Industry Overview

Gentleman Inc. operates in the personal care industry, which is segmented by hair care, nail care, skin care, and massage therapy. This overall industry is highly competitive and extremely fragmented due to over 200,000 undifferentiated establishments throughout the U.S.5 With many competitors, customers have significant bargaining power and choose a salon/spa based on location and quality of services. Gentlemen Inc. also competes in the grooming products industry, which is significantly more attractive for salons because they employ intense personal selling tactics through the close stylist to customer relationships. This success is evidenced by increasing sales of professional grooming products in salons from $2.5 billion in 1995 to $3.2 billion in 2000.6 However, in order to succeed in this increasingly unattractive general personal care industry, it is necessary to differentiate by focusing on niche markets.

Marketplace and Target Market

Within the Boston area, a large number of female oriented competitors exist on Newbury Street that are increasingly serving a male clientele. Due to the growing metrosexual trend in the market, Gentleman Inc. will enter this marketplace as the first exclusively-male salon that offers convenience, quality, and a unique atmosphere to a portion of the male population. Gentleman Inc. will target the professional business males, aged 20-40, with a high disposable income of at least $50,000 per year. Based on the population statistics of the Boston area, the company will have an initial target market of approximately 140,000 males who currently purchase personal care services. However, through education, there is a significant opportunity to reach the 360,000 male consumers7 within the targeted demographics who are not currently aware of the availability of these male services. Overall the Boston market presents significant potential for Gentleman Inc. to take advantage of the current dissatisfaction and specific needs of this emerging market.

Competitive Advantage Although the basic services and products provided are not entirely unique, the combination of convenience, quality, and atmosphere provide a significant competitive advantage. While many males are currently being served by unisex salons on Newbury Street, an easily accessible location in the financial district is essential to reach these busy corporate males. The masculine environment will be focused on high service quality and offer men the major benefit of enhancing their image through a comfortable experience at Gentlemen Inc. The image of the company as the first all male salon in Boston will provide a high status, masculine appeal that is not presently being offered through predominately female salons and spas. The �old � world library� atmosphere provides men with the surroundings that enhance camaraderie and relaxation. The concept of customer service catering completely to each male client in this classy yet comfortable environment provides an unprecedented personal experience that will entice men to become loyal customers of Gentleman Inc.

5 RDS TableBase. �US Retail Landscape Expands in Some Aspects, Contracts in Others�. Research Alert, January2003. 6 RDS Bizsuite. The Mane Event. American Demographics. Rebecca Gardyn. Feb 2001 7 Scarborough Data. Release 1 & 2, 2002, NY: Arbitron Qualitap Software, v. 9.0, 2002.

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Business Model

Gentleman Inc. will generate revenue from services provided and retail sales. The initial start - up costs require $513,000, due to the equipment purchases and renovations to the business space. Operating costs are represented by industry averages of salons and spas, mostly targeting females, since male specific salons and spas are still emerging. Gross Margins are 50% of revenues due to the commission to skilled professionals and the cost of sales on retail products. The table shows projected revenues, margins, operating expenses, net profit and cash flow for years one through five.

Year 1 Year 2 Year 3 Year 4 Year 5

Sales 489,357 1,133,408 1,802,208 2,853,285 3,036,232 Gross Margin 244,679 566,704 901,104 1,426,642 1,518,116

Operating Expenses 436,675 420,279 480,471 575,068 591,533

Net Profit (192,206) 102,498 294,443 596,102 648,608 Cash Flow 87,794 260,292 624,735 1,290,838 2,009,446

Funding

The founders of the company will be contributing their personal savings as well as utilizing personal loans to raise funds for the establishment and development of the company. Gentleman Inc. is seeking $600,000 in business loans at 10% interest for twenty years. This will cover all start � up costs as well as provide some flexibility with cash flows during the first year of operation

Management

Heather Tomkinson � She is currently pursuing a Bachelor of Science degree in Business Management from Babson College. She recently worked at a large international corporation developing and conducting a market research plan for a new product being introduced into a mature market. She provided the vision for the business. Chris Gartlan � He currently holds the Director of Marketing position at The Battlegreen Inn and Suites while concurrently pursuing his Bachelor of Science in Business Management from Babson College. He also gained operations experience while holding the position of Warehouse Manager. Erin Hurley � Surrounded by this industry beginning at a young age, Erin has valuable knowledge about beauty salons and spas. She currently is pursuing a Bachelor of Science in Business Management. She has experience working in a small start-up developing sales publication and also assisting in other marketing operations. Rebekah Leger � Her quality people skills have created connections with other entrepreneurs developing businesses in the spa industry. A background of customer service in many industries provides unique input. She also is currently pursuing a Bachelor of Science in Business Management. Mike Sattler � With strengths in both finance and strategy, Mike adds valuable knowledge to the group. He gained the experience not only while pursuing his Bachelor of Science in Business Management from Babson College but also while working for Wachovia Securities for 3 years. In addition to the team above, Gentlemen, Inc will form an advisory board of experienced professionals that can give the management team guidance through the venture�s early stages.

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2.0 Company Overview

2.1 Company Description

Walking through the door, the smell of leather and wood creates a sense of elegance and masculinity. A young woman encourages you to sit, relax and enjoy a drink while your spa services are being prepared. The space makes you forget the traffic and projects awaiting you upon your, exit. Simply enjoy the retreat; the focus is on you. Then walk down a richly painted hallway into a simple, yet indulging room and relax on the table. Soft towels and cushions surround you as you sink deeper into relaxation. Fingers start to massage your back, leaving the stress of the day behind. When the visit is finished you feel invigorated and ready to tackle anything the world can throw at you.

Gentleman Inc. is a male salon and spa that offers services within both the spa and salon categories but within an atmosphere that is comfortable and relaxing for the male customer. The following lists the type of services and products provided by Gentleman Inc.

Hair: shampoo, hair cut, styling, coloring, highlights, growth treatments Nails: manicure, pedicure Skin: essential facials Waxing: eyebrow, body Massage: back, full body, scalp, neck Grooming Products: shampoo, conditioner, gel, moisturizer, shaving cream and

supplies, facial cleansers

Offering these select services especially to males is unique in the Boston area. Better yet, Gentleman Inc. offers an atmosphere that allows males to be comfortable to take advantage of these services. A customer walks into an old � world library sitting room that acts as the waiting room and also a place for relaxation and conversation. Decorated with detailed dark woods and leather helps create this masculine elegance. Literature such as The Wall Street Journal, Business Week and even Sports Illustrated provide males with reading material that goes beyond what celebrity was wearing what. In addition to reading material for men, high definition, flat screen televisions will be located throughout the salon and spa tuned to business and sports news, or anything else that a man wants. A small bar provides drinks for the customers who want to relax not only with a massage but with class. Also within the reception area, shoe shines and hot shaves are available for the male who wants to give the best impression with the smallest details. Gentleman Inc. not only provides the assistance to make the best impression to �make your way� up the corporate ladder, but also as an escape from the pressures of every day in an environment that is desirable.

2.2 History and Current Status

Currently, Gentleman Inc. is still in the development stage. Still investigating possible locations in the Boston financial district, Gentleman Inc. is developing the necessary systems and processes for operation. The business is also in the process of raising funds and finding advisors to give Gentleman Inc. the edge in the marketplace in terms of resources. The opportunity is available, but some development is needed to capitalize on it for long-term sustainability.

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2.3 Competitive Advantages

Gentleman Inc. offers males the comfort of being in an environment more catered to their interests. It also provides the camaraderie between males due to the intended nature of the atmosphere, a men�s classy social club. The professional, old-world lounge allows a male to be comfortable relaxing rather than worrying about who will see him in the window of the female salon down the street. The services that Gentleman Inc. also offers provide a competitive advantage over other establishments. Salon and spa services provide style transformation to give the male customer confidence. Massage services offer stress relief providing relaxation and through this better work productivity. Some establishments offer a multitude of services, some of which have no overt benefits. Gentleman Inc. knows what will appeal to, and benefit, the male customer so there is no confusion. Gentleman Inc. provides the male customer the opportunity to look and feel the image of the highest executive with their customer service where the customer is the center of attention. Individualized customer service based upon customer databases and information will allow Gentleman Inc. to develop strong relationships with its customers to sustain loyalty and success. Gentleman Inc. has an advantage over the hundreds of small competitors because they provide the male customer what no other salon or spa in the Boston area does: comfort and style.

2.4 Entry, exit, growth strategies 2.4.1 Entry Strategies

Since there are currently no exclusively male salon and spas in the Boston area, the entry strategy for Gentleman Inc. revolves around creating demand for the services to males who are already interested. Thus, Gentleman Inc. intends to capitalize on the publicity generated around the opening of such a business. Also, with the chosen location within the financial district of Boston, Gentleman Inc. will be convenient for the males that would gain interest in the business. Through industry trends it is apparent that the large metropolises are becoming areas for increased male services in the salon and spa category.

2.4.2 Growth Strategies

With an established client base from males who are already familiar with the Gentleman Inc.�s offerings, it will be necessary to expand by targeting other males that are still emerging into the male grooming industry. Gentleman Inc. will educate males about the benefits of its services by emphasizing three different aspects: ! Quality and uniqueness of services

Gentleman Inc. will differentiate by hiring skilled professionals in all areas of service. In addition, each professional will undergo continuous training and updating of knowledge in their respective service area. Training in customer service for all professionals will also enhance the connection with the client and create a lasting relationship.

! Atmosphere

Rather than finding female oriented magazines and soft pastel colors throughout the salon and spa, males will feel comfortable surrounded by leather, dark woods and business and sports programs. To escape the

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pressures of the day, males can relax in the company of their colleagues while being pampered.

! Relationship with Community

Gentleman Inc. wants to make males realize the benefits of relaxation and image. Through developing relationships with surrounding corporations, Gentleman Inc. plans to enhance any male�s performance within their company through convenience and quality. This way they can enjoy the more intangible things in life such as their family and friends.

2.4.3 Exit Strategy

With the anticipated success of Gentleman Inc., the company plans to consider options for a buy out to a company with greater resources to create franchising or expansion options.

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3.0 Industry, Marketplace, and Competitor Analyses

3.1 Industry Analysis

Gentleman Inc. will operate in the Personal Care industry, segmented by hair care, nail care, skin care, and massage therapy. Since there are no large or major players dominating the market, this industry is extremely fragmented. The highly competitive and fragmented nature of this industry is evident through the 200,000+ personal care establishments in the United States.8 A summary of the Personal Care industry depicted through a Porter�s Five Forces analysis, illustrated in the diagram below, indicates that the general industry is extremely undifferentiated. This is unattractive for potential new entrants because of the limited power of one small establishment. Figure 3.1.1 Industry Analysis Using Porter�s Five Forces Model

The rivalry among existing players in the industry is very high, as mentioned above, with over 200,000 current service establishments that basically compete on location and price. There has been some recent consolidation in the industry, which allows the top four salon/barber shop chains to have a total of 5.3% market share.9 This consolidation is a result of the problem of declining profit margins in the industry as a result of rising insurance costs and taxes. However, due to the small size of these current competitors overall, barriers to entry are low. There is a moderate threat of substitutes that includes

8 RDS TableBase. �US Retail Landscape Expands in Some Aspects, Contracts in Others�. Research Alert, January

2003. 9 MarketResearch.com Academic. Beauty Salons. April 1, 1997.

Threat of Substitutes

Moderate

-home grooming, dermatologists

Threat of New Entry

High

-low barriers to entry -low switching costs

Bargaining Power of Buyers

Moderate to High

-many competitors to choose from

Bargaining Power of Suppliers

Moderate

-many beauty professionals -larger grooming product suppliers

Rivalry of Existing Players

High

-undifferentiated -compete on location and price

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personal home grooming and dermatologists/doctors.10 In terms of suppliers, the retail grooming industry, another industry in which Gentleman Inc. participates, must be examined. Large manufacturers of these grooming products possess the bargaining power, making the small, individual retail outlets the price takers. Salons/spas, however, have the advantage of building relationships with clients and personally recommending products backed by their professional expertise with significant markup from cost. This success is evidenced by increasing sales of professional hair products in salons from $2.5 billion in 1995 to $3.2 billion in 2000.11 The other major suppliers in this industry are the employees, professionally trained stylists, nail technicians, massage therapists, and cosmetologists whose salaries and commissions comprise an average of 52% of salon revenue.12 Thus, it can be concluded that the overall bargaining power of suppliers is moderate to high. In terms of products, the professional expertise of the stylists allows the service establishment to retain some power and influence over the customers� purchases. The plethora of competitors and the undifferentiated nature of the industry, however, allow the customers to possess high bargaining power.

3.1.1 Trends

Through the industry analysis it can be determined that to sustain profitability in this highly fragmented industry, it is necessary to differentiate by targeting niche markets. Several current trends present a substantial opportunity to take advantage of the growing demands of the male personal care market. High levels of stress in today�s society have brought the market toward a �well-being� trend, established by increasing health awareness and time pressure. Overall spa facial care and body care are expected to rise 6.7% and 10.5% per year, respectively.13 This trend has significant impact on the spa aspect of the industry, which will be considered less of a means of pampering and more of a health necessity. The metrosexual, defined as �a young man with money to spend, living in or within easy reach of a metropolis - because that's where all the best shops, clubs, gyms and hairdressers are�14, has emerged in American society. The acceptance of this male concerned with maintaining his appearance, a previously feminine pursuit, is evident through the enormous success of the television show Queer Eye for the Straight Guy. Males currently represent 49% of total U.S. spending on haircuts and other personal care services due to the fact that they spend more on a per capita basis.15 In addition, the fact that 29% of spa clients nationwide are men16 quantifies the validity of these trends and significantly impacts future change toward an increasingly male oriented atmosphere in the personal care industry. In light of these trends, Gentleman Inc. has a valuable opportunity to capitalize on the growing needs of the male market for personal care services. To retain profits and increase competitive advantage in this generally unattractive and highly competitive industry, creating a location that is accessible and attractive to these metrosexual,

10 Marketresearch.com. �These Days, Day Spas are Much More than Pampering Palaces". Kathryn Santoro. March 1997. 11 RDS Bizsuite. The Mane Event. American Demographics. Rebecca Gardyn. Feb 2001 12 MarketResearch.com Academic. Beauty Salons. April 1, 1997. 13 RDS Bizsuite. "Spa Facial and Body Care Markets Will Grow in the US as Consumers Seek �well-being�."

November 2001. 14 Mark Simpson, "Meet the Metrosexual," Salon.com, July 22, 2002. 15 MarketResearch.com Academic. Beauty Salons. 4/1/1997. 16 The ISPA 2003 Spa-Goer Study. http://spas.about.com/library/weekly/aa072503ispastudy1.htm. 9/26/2003.

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stressed, young corporate males will give a salon or spa the distinction to allow economic sustainability.

3.2 Marketplace Analysis

Gentleman Inc. competes within the male hair care and spa service industry composed of salons, barber shops, and spas that offer both hair care and spa related services. Within this industry, Gentleman Inc. will be operating in the greater Boston area marketplace, more specifically within the financial district of Boston. This specific market is highly concentrated with corporations and retail stores, many of which include salons along Newbury Street and surrounding prestige areas. The consumers within this market consist mainly of business professionals, most of which are male, and for this purpose, the marketplace may be segmented based on gender, occupation, buying habits, and income. Gentleman Inc. will be targeting a certain portion of this male population, and the target market can be broken down as follows: ! Approximately 2.million males presently reside in the greater Boston area (3%

increase from prior year) - 560,000 of these have purchased personal grooming products within the

last year. - 140,000 have a high disposable income (greater than $50,000) and hold

executive occupations. - This creates an initial target market of approximately 140,000 males within

the greater Boston area who will be interested in Gentleman Inc.�s services.

The secondary market targeted is the uneducated male population that fit the above demographics of a high disposable income and an executive occupation. This market can be broken down as follows:

! Approximately 500,000 males have a high disposable income and hold executive occupations. - Approximately 360,000 of this represent the secondary market that

Gentleman Inc. will educate and market to.17

17 Scarborough Data. Release 1 & 2, 2002, NY: Arbitron Qualitap Software, v. 9.0, 2002.

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Figure 3.2.1 Breakdown of the Target Market in Boston Area

Based upon primary research conducted by Gentleman Inc., buying decisions of males within the particular marketplace are motivated by convenience, price of the products, image of the salon, the variety of services offered, quality, and the atmosphere of the location.

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Chart 3.2.1 Influential Factors on Buying Decisions

As seen in the chart above, the two most dominant factors affecting the decision to buy are convenience and quality. Opportunities exist if a company can capitalize on these two factors, along with a differentiation factor of its unique atmosphere (third most dominant factor).

There are important trends that affect this marketplace. Firstly, the metrosexual trend is specifically important in the marketplace in which Gentleman Inc. will be operating due to the fact that Boston is a highly metropolitan area. Many of the men within the financial district fit into the category of a metrosexual male, for research showed that 100% of those surveyed indicated that appearance was extremely important in business; however, there is no existing salon solely for men. Established successful male salons are located in areas such as New York City and Denver, two cities that display similar marketplace characteristics as Boston.

Another trend that may affect the marketplace is the increased competition in applying for jobs in professional careers. Over the past years, it has become increasingly difficult to get a job, even with a college degree. Employers are beginning to take every aspect into account when hiring for a specific position, appearance being one of them. Because the financial district of Boston holds a large number of professional jobs, this trend may greatly affect the marketplace, causing the consumers and the market to become more focused on a professional look.

Current companies that service the target market include salons, spas, health clubs, and barber shops, yet none of them are offering all male services to meet the needs of one of its biggest market segments (see Table 3.3.1). Primary research indicated that there is an unmet need in the existing market which is represented in the chart on the following page.

Influential Factors on Buying Decisions

24%

22%

12%4%

24%

14%Convenience

Price

Image

Variety of Services

Quality

Atmosphere

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Chart 3.2.2 Percent of Possible Customer Interest in Services

Men desire services such as manicures and pedicures however, only 34% of the men surveyed actually feel comfortable in a female salon.

Males are dissatisfied with the present offerings of the market, and research showed that 70% are or might be interested in an all male salon. Therefore, an unmet need in the market place exists, thus providing a great opportunity for Gentleman Inc. to attain first mover advantage.

3.3 Competitor Analysis

Within the greater Boston area marketplace, competition by spas and salons is very large as seen by the 638 beauty salons in Boston and the 84 day spas18. Within the male niche segment however, few competitors exist. For grooming and pampering services, a customer may utilize haircuts, massages, or even exercise and hot tubs. While more beauty and health services cater towards women, male customers do provide revenue from necessity. Four categories of competition exist for Gentleman Inc. within Boston. Each competitor has their strengths overall as well as weaknesses for serving the male market.

! Beauty Salons � Direct Competitors Most of these salons are for both genders alike but a lager percentage of the

customer base is women. The salons offer hip, up to fashion hairstyles at a wide range of prices. The trend for most of the salons around Boston is best exemplified by James Joseph Salon on Newbury Street.19 James Joseph targets young hip men and women who want low priced cuts and colorful service. Their slogan is �if you are looking for a cut that�s more cutting edge than others, seek no further�20 Each salon claims to offer a range of treatments and professional personal attention. Males utilize these businesses for the haircuts with style; however, they lack the spa services that would allow for relaxation. Many male

18 �Salons AND Day Spas +Boston�.Verizon super Pages. http://www.superpages.com, Nov. 15, 2003 19 www.jamesjosephsalon.citysearch.com 20 Best of Boston www.datefinity.com

% Interest in Services

21%

14%

21%16%

28% ManicuresPedicuresFacialsSkin ConditioningWaxing

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customers have problems visiting a more female oriented salon due to the fact that the surroundings may cause embarrassment and discomfort.

! Day Spas � Direct Competitors Day spas are primarily focused towards women but cater to men as well. One

weakness of a day spa is that most men may feel uncomfortable being in an environment normally associated with women. Spas may make some men feel effeminate. Also a day spa takes up a large part of the day, most business men do not have the time to stay all day for relaxation treatments. Prices at most spas around Boston are very high. This is a potential weakness due to the male-determined lower value for a high financial price in addition to the opportunity cost of time. While interviewing potential customers, Gentleman Inc. found a large concern was the embarrassment of being seen getting �female� treatments. Spas do not openly advertise to male customers, letting them know the benefits of spa treatments. These businesses also incur little advertising costs due to the fragmented nature of the industry and tend to shy from mass marketing. Establishments such as the Giuliano Spa offer similar services however, the atmosphere is directed towards females, thereby not being a comfortable atmosphere for the male customer.

! Barber Shops � Indirect Competitors Although there are only a few traditional barbershops left in the Boston area they

are still attracting customers who could be coming to Gentleman Inc. Loyalty is a strong factor in the business of barber shops because most men that frequent one have been going there for years. Not being up to date on new styles, and not offering more advanced services such as coloring, etc. is a weakness for these businesses in the eyes of the progressive professional. Little advertising beyond word of mouth also represents a weakness of barber shops because they do not exhibit growth in customer base.

! Health and Fitness centers � Indirect Competitors Health fitness centers are a potential competitor for Gentleman Inc. since they

are competing for the customer�s time as well as his money. There are 15 fitness centers in Boston.21 The weakness most fitness centers have is they only allow members to use their facility, which means the customer must pay for a membership. Most business men don�t have the time or energy to get use of a month or year long membership. Gentleman Inc. will be competing with the method of relaxation a customer chooses, do they want a massage, or a long run on a treadmill. Some newer heath centers are also beginning to offer a masseuse on the premises for their members and so they would be a direct competitor in this area of the business. Although the two businesses seem different both are ways to improve a man�s image, thus must be considered competitors.

To entice the male customer away from these substitutes for Gentleman Inc. the business must offer them what the competitors do not. As shown by the trends in both the industry and the marketplace, males are beginning to be more aware of their appearance and its affect on others. As a result, salon visits and spa treatments are becoming more frequent with the more self-assured individuals. Salons may offer the style that a man wants and the quality, however a man must be comfortable receiving

21 �Fitness Centers +Boston�.Verizon super Pages. http://www.superpages.com, Nov. 15, 2003

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the service. To make these actions more acceptable, the environment must be changed. No other competitor offers a masculine environment. In addition, since the spa treatment use by men is relatively recent, their hair care is not combined with the spa treatments. As a result, Gentleman Inc. will be the first to fulfill the need of both the relaxation and skin care of spa treatments in the same location as their regular hair cut. The location of the business is also unique, being in the financial district, right next to their work. While Newbury Street may be convenient, the shopping atmosphere may also inhibit the comfort for the male customer. With the emerging needs of the urban male increasing, Gentleman Inc. will provide these services with the convenience not yet served. Table 3.3.1 Boston Competitor Chart

Gentleman

James Joseph

Liquid Hair

Salon Mario

LA Splash Giuliano

Inc. Salon Studios Russo Spa Spa

Type Salon &

Spa Hair Salon Hair

Salon Hair Salon Spa Salon &

Spa Service Hair cut X X X X X X Hair style X X X X X X Coloring X X X X X X Highlights X X X X X X Growth treatments X X Manicure X X X X Pedicure X X X X Eyebrow -wax X X X Body-wax X X X Massage X X X Retail X X X X X X

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The Value Proposition below provides a visual look at what male customers currently want and what is not being provided by our competitors. This leaves a large opportunity for Gentleman Inc.

Figure 3.3.1 Value Proposition

What Customers

Want What Gen. Inc. Offers

What Competitors

Offer

- Image and Style

- Location

- Variety of Services

- Gentleman�s Atmosphere

- Quality

- Image and Style

- Location



- Service Quality

- Image

- Service Quality

- Low Price

Gap in Marketplace

- Location



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4.0 Marketing Plan

4.1 Target Market Strategy

Gentleman Inc. will initially be targeting the image-conscious male in Boston. These males express concern with personal appearance, and range from 20 to 40 years old. Most importantly, these males currently hold a professional or executive occupation in the greater Boston area, and make an annual income of over $50,000. The $50,000 income level may seem lower compared to living expenses, however a single male interested in advancing his career will be concerned with his appearance. Therefore, these single males would be interested in services beyond the basic haircut. With this description, Gentleman Inc. would target roughly 140,000 prospective males within the area. Through first mover advantage Gentleman Inc will gain access to a broader range of males who fit the characteristics of the original target market with regards to age, income, and professional occupation, but who may not initially be interested in personal appearance or knowledgeable about the services available to them. Gentleman Inc. plans to tap into this greater market through education strategies to increase awareness about their services and the benefits of them. In doing this, Gentleman Inc. creates a potential target market of 360,000 males over time, hoping to capture 1% of the $450 million in salon revenues within the first 5 years of operation (based upon the conclusion that revenues will not exceed $2 million during these early stages of high expenditures and market penetration).

Through its unique and comfortable atmosphere, location, and variety of products and services Gentleman Inc. will be fulfilling a great need in the market. To assess the market demand for Gentleman Inc., primary market research was conducted on males that fit the characteristics of the target market. Based on this market research, 100% of the potential customers surveyed said that appearance in business is of great importance. Gentleman Inc., through its variety of products and services, will fulfill the desire to �look and feel good�, catering to the need within the target market. Although other competitors may also fulfill the need for style and image, they do not offer all necessities in one location. Convenience, which 86% of the potential customers expressed as �very important�, will also be created. Because Gentleman Inc. will be located in the financial district of Boston and will offer a variety of services in one location, it will be meeting the need for convenience. In addition to this, the times of operation cater to the most convenient times expressed by our potential customers, opening early in the morning and closing in the evening following work hours. Lastly and most importantly, Gentleman Inc. will be creating a comfortable atmosphere solely for men that no other salon in Boston offers at this time. Traditionally, our target customers are visiting salons and receiving services in a female-oriented environment. While many of the potential customers expressed interested in salon and spa services, only 34% said they feel comfortable in a female salon. Gentleman Inc. will capitalize on this discomfort and comfort these previously neglected males by emphasizing a �masculine� environment not previously provided. Not only will Gentleman Inc. be building upon unmet needs, but primary data indicates that customers are interested in the idea of the business. Twenty-eight percent of those surveyed would be interested in a male salon, and 42% said they might be interested. These percentages must be considered within the place of the overall market. This niche market is still emerging, thus, with a quarter of potential target market customers interested room for growth is evident. This also solidifies the necessity for education

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within our advertising. While the services may not have been a determining factor due to their emerging popularity, another aspect of the business represented greater importance. With the exception of hair care, over 50% of surveyed potential customers prefer a female performing their services. Gentleman Inc. will capitalize on this demand, and will create a comfortable environment developed solely for the male population

4.2 Product / Service Strategy

Due to its image and atmosphere, Gentleman Inc. is positioning itself as the top, exclusive male salon / spa within the greater Boston Area. No competitors, from health clubs to female salons, offer the variety and range of services that Gentleman Inc. offers, nor will they have the elite staff that the company will develop and train. In addition to this, there is no other similar service presently offered in this area, allowing Gentleman Inc. to move into this developing industry segment and target this untapped market. Presently, female salons offer hair cutting, styling, and coloring, and barbershops offer hair cutting and maybe styling. 36% of those surveyed receive their hair cut in a salon, yet only 34% felt comfortable. Gentleman Inc. will be combining these two ideas, one of which is more prestige than the other, to create a completely male oriented environment to cater to the demand of good service and variety of service in a comfortable atmosphere. Gentleman Inc. will differentiate through the unique combination of salon services and the comfortable atmosphere and image it will create In addition to the salon services that Gentleman�s Inc. will be offering are the spa services. The spa services fall into three categories: nail care, skin care, and massage therapy. Within the category of nail care are the manicures and pedicures. As revealed through customer analysis, there is a demand for these services. Approximately 25% of those surveyed expressed interest in nail care. However, not many people receive these services for several reasons: the atmosphere of the location where target customers currently need to receive these services; the image it portrays in the current market; and, the lack of knowledge about these services. Customer interviews revealed that many customers do not know what the service is or its benefit. Following an explanation, potential customers expressed interest. For example, many men were willing to try facials when educated as to their benefits, and massage therapy was also an option if it was convenient. Therefore, with education and advertising, Gentleman Inc. believes that spa services could provide a large revenue driver. Presently, there are many existing salons along Newbury Street of Boston, yet there is not any existing salon that caters solely to the male customer. Therefore, Gentleman Inc. will be offering a service that no other business presently offers, leaving no direct competitors in the area. However, health clubs, existing salons, and massage therapy locations will be competition, for which Gentleman Inc. will stress its convenience, service, and comfortable atmosphere as a competitive advantage. Switching costs are expected to be moderate, for Gentleman Inc. plans to immediately establish excellent customer relationships, promotions, and service to replace and enhance the experience for customers. A risk of imitation salons once Gentleman Inc. is established exists. While competitors can enter the market, by the time one is created Gentleman Inc. will already have an existing share of the market and a loyal customer base. Through the comfortable atmosphere, customer service and the professional service providers, Gentleman Inc. will work to create this loyalty among our customers. Inadequate customer service within

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these smaller imitation salons will allow for Gentleman Inc. to continue its growth and sustain profitability.

4.3 Pricing Strategy

Gentleman Inc.�s pricing strategy will be above that of our competitors such as James Josephs, although Gentleman Inc. does not have any exact competitors in the greater Boston area. Gentleman Inc. will be pricing its products and services at premium prices to create an image of high quality and prestige, which will fit with the overall atmosphere of the offering. With competition pricing strategies based upon the service provided and the quality of said service to the customer, it is important for Gentleman Inc. to get the best employees of the highest quality so that it is able to reasonably charge prestige prices. Gentleman Inc. is able to do this due to its prime location, the quality of surrounding stores and restaurants, and the disposable income of potential customers, and the overall atmosphere and setting of the location itself. A premium pricing strategy supports the image and reputation that Gentleman Inc. is setting out to achieve as �the� prestigious up-scale salon and spa created for Boston�s established male audience.

4.4 Distribution Strategy

Essentially, Gentleman Inc.�s distribution strategy begins through a central retail location located in the financial district of Boston that is easily accessible to its target market as well as potential new customers. It will be offering its services from 5:30am until 7:30pm, Monday through Friday, meeting the needs and availability of customers with busy work schedules. Due to the fact that one of its major offerings is convenience, this strategy is essential for distributing the products and services in a way in which they are easily accessible and available to the target market. Through offering a variety of services in a convenient location where most of the target customers are located, Gentleman Inc. plans on attracting and maintaining repeat customers on a weekly and monthly basis. With regards to the specific distribution of its products and services, Gentleman Inc. plans to offer its services in separate rooms located throughout the location. Hair services will be offered in one room, manicures and pedicures in another, massages in a separate room, and facials in another. In doing this, the company will not only be encouraging men to receive these services in a safe location that they may otherwise reject, but it will be offering them in the privacy that they desire as proven through customer analysis. The specific retail grooming products, such as shampoo and facial lotions, will be distributed on glass shelves that are directly visible when a customer walks in. Through high visibility and easy accessibility, Gentleman Inc. will promote the purchasing of the products it offers.

4.5 Advertising and Promotion Strategy

Promotions for Gentleman Inc. will occur in three stages: ! Stage One will occur prior to opening Gentleman Inc. and will focus on educating

the consumer market that such an establishment is going to be in place. ! Stage Two will occur simultaneously to the grand opening and through the first

six months and will be focusing on a series of new promotions that will tap into the target market in the hope of establishing a customer base.

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! Stage Three will be phased in after Gentleman Inc. has been operating for approximately six months and will focus on continuous advertising as well as the introduction of a new wave of promotions.

! Stage Four will be implemented once the company is established and will revolve

around educating the larger, potentially untapped market of men in the Boston area. During this final stage continuous efforts will be made to maintain present customers� satisfaction and loyalty to Gentleman Inc.

4.5.1 Stage One

Gentleman Inc. will reach out to the entire greater Boston market to announce its arrival to the city. To gain publicity for being the first male oriented salon and spa in the Boston area, soliciting of local area written publications will help create a buzz around the opening. In addition, publicity through television clips by local stations that highlight this national trend along with radio interviews with management will hopefully educate and inform the target market about Gentleman Inc. Several other businesses with a similar model have opened in other cities and have received a great deal of recognition and interest in the media. Gentleman Inc. expects to receive the same attention. Advertising will be relatively simplistic in an attempt to bring Gentleman Inc. into the eyes of the consumers of the Boston area. Brochures will be distributed in selected �hot spots� such as Newbury Street and other locations of the financial district to attract potential customers. These brochures will contain a 10% discount for the first week following Gentleman Inc.�s grand opening.

4.5.2 Stage Two

Stage two promotions include a mix of advertising and alliances. First, Gentleman Inc. plans on forming alliances and establishing relationships with the large surrounding corporations in the area. A manager of Gentleman Inc. will begin to establish relationships with possible future customers through visiting corporations and trying educate upper management. They will be creating and offering corporation packages in which they will sell directly to the head of the corporation, rather than focusing on individual sales to the employees. This plan works in that the corporation will purchase a certain amount of services per employee per month as part of the employee�s compensation package. For example, the corporation will pay a certain fee per month so that its 500 employees can get their hair cut and their nails done twice a month, with the employee responsible for setting up an appointment. Through these alliances, Gentleman Inc. will be able to establish important relationships with customers, as well as receive a guaranteed payment up front. In addition to this, the corporations that form alliances with Gentleman Inc. will be promoting the idea of �looking good� by creating a prestige look for the company as a whole.

A second promotion strategy that will be implemented simultaneously to alliances is the referral plan. The referral plan is a major form of advertising for Gentleman Inc. that will get potential customers to try the services. Every first-time customer to Gentleman Inc. who receives a service over $50 dollars will be given 10 distribution cards. These 10 cards may then be distributed to friends, family, co-workers, etc., and for every new customer that presents the card with the name of the referral, the referrer then receives a $10 dollar gift certificate. In addition to this, the first-time customer referred receives a free manicure if he purchases $50 dollars worth of products and services. This strategy

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allows the original customer to receive as much as $100 dollars worth of free services, as well as allows the new customer to try one of the less obvious services, the manicure. This will not only promote some of the less traditional services, but also allows Gentleman Inc. to broaden its customer base.

Lastly, as part of stage two, Gentleman Inc. will be mailing out brochures to surrounding businesses, restaurants, fitness centers, and corporations.

4.5.3 Stage Three

Stage three promotions focuses on attracting the potential target customer with a high disposable income through advertising in prestigious places. In addition to this, Gentleman Inc. plans to achieve high visibility through forming alliances with locations that share similar visions, which will help it establish itself as a prestige location. The below promotions are planned to be implemented after one year of operation, and are expected to run for a year Stage three of promotion involves the creation of strategic alliances with surrounding prestige shops, restaurants, retail stores, and gyms in the greater Boston area. Gentleman Inc. plans on establishing relationships with surrounding businesses so that they can develop mutually beneficial promotions based on spending. For example, for every $100-500 dollars that a customer spends in a particular alliance location (the amount is dependant on the prices of the store or restaurant), the customer will receive a 5% to 25% off their first visit to Gentleman, Inc. If a customer spends $100 at Neiman Marcus, then he will receive a 5% discount by bringing the receipt to Gentleman, Inc. If he spends $500 or more, then he will receive up to 25% off his desired services at Gentleman, Inc. (amounts may vary depending on prestige of location). In return for this promotion, Gentleman Inc. will offer the upper management personnel of each particular location monthly visits for a year. In addition to this, each alliance will be allowed to advertise their location through desired means at Gentleman Inc. Gentleman Inc. will further be creating a similar agreement with surrounding Boston fitness centers and health clubs. For every new male member joining the particular health club, he will receive a discounted hair cut at Gentleman, Inc. Stage three promotions also include advertising to women, who influence the purchases of their male counterparts. Gentleman Inc. will be advertising through women salons and shops encouraging them to purchase a �gift their significant other will love.� The company will offer holiday and birthday packages that women can purchase for their husbands or boyfriends, one of which is a combination of the Massage, Manicure, Pedicure, and facial for a set amount. (This package was designed so that men will be encouraged to try services that they may not be normally willing to try.) In addition to this, for every new women member joining a health or fitness club, Gentleman Inc. will offer 10% off their first purchase of a package gift certificate at Gentleman, Inc.

4.5.4 Stage Four

Stage four promotions focus on expanding the customer base and target market of Gentleman Inc. through advertising, publicity, branding through sports sponsorship, and education to customers. Stage four is mainly focused on educating potential customers about the benefits that Gentleman Inc. offers, as well as advertising to other potential customers not presently identified as the target market.

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Gentleman Inc. plans to establish sports related sponsorships and affiliation with Boston sports teams. Its plan is to have sponsorship with Boston professional teams: Red Sox, Patriots, Celtics, or Bruins. In return for this sponsorship, each team will receive special benefits provided by Gentleman Inc. For example, each team roster will have full access to the facility, pending availability, for two days throughout the month of their off season. (Gentleman Inc. will close the facility for the scheduled day). Gentleman Inc. is willing to spend necessary funding on this venture, and also plans to have access to a billboard at the sport events as well.

Stage four promotions also rely heavily on publicity to establish brand name. Due to first mover advantage and the trends in the current market place, Gentleman Inc. expects to receive media attention that will help the company establish its brand name as well as promote its products and services. Once the target market, as well as others, begins to recognize the benefits of the product and service, Gentleman Inc. plans on jumping on every opportunity for publicity through newspaper articles, TV talk shows, TV news channels, and radio stations, where it hopes to educate potential customers as to benefits of its offering.

This stage of promotion also largely focuses on education. Gentleman Inc. plans on creating street teams to go out and educate the greater Boston market as a whole. In addition to this, the company will begin to offer short term promotions every 3 months that will run for two to four weeks and that are focused on promoting some of the less utilized services. For example, if a customer spends over $100 dollars he will receive a free manicure, over $150 he receives a free pedicure, and over $300 dollars a free facial. These short term promotions will help customers try new services and will offer a benefit to its already loyal customers.

4.6 Sales Strategy

Gentleman Inc. plans to sell its services through the unique male-oriented atmosphere that completely caters to the customer. The receptionist working at the front desk that answers the phone and greets customers at the door will play a pivotal role in helping customers make service purchase decisions. A customer database will also provide personalized information on preferred services, providers or specific needs. This personal experience provided by the high levels of customer service is an essential aspect of the sales strategy. Through the quality of service provided from the moment a customer enters the establishment Gentleman Inc. provides a trusting, comfortable, safe place to visit. Employees will establish close relationships with customers to the point where they know their customers by name and preferences. Gentleman Inc. plans to sell itself through the strength of its quality brand image and the loyalty developed between customer and employee, ultimately sustaining sales through ensuring �return visits� from customers.

4.7 Marketing Financials 4.7.1 Sales and Revenue Forecasts

Although Gentleman Inc. expects a large growth rate due to the industry and marketplace trends, this must be allocated over the first five years. Gentleman Inc. assumes that for the first 6 months there will be limited growth in both the number of client sales and revenue by 10%. For the third quarter of the first year the business assumes 15% growth rate and then 20% in quarter four. For the second year, a growth

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rate of 40% is assumed. This growth is increasing due to the learning curve which will increase brand and service awareness through promotional campaigns. For years 3 and 4 a growth rate of 50% is assumed due to the cumulative investment in marketing expenditures. However in year 5, Gentleman Inc. will reach near capacity and have limited growth in sales, providing an opportunity for expansion. Chart 4.7.1.1 Yearly Client (unit) Sales Growth

0

20000

40000

60000

80000

100000

Units

Year 1 Year 2 Year 3 Year 4 Year 5

Sales Growth

ServicesRetail

Chart 4.7.1.2 Yearly Revenue Growth

4.7.2 Marketing Expenses

Marketing expenses constituted one of the largest expenses on Gentleman Inc. For the stage one efforts, a start-up cost of $3,000 is expected. Gentleman Inc. then assumes a $5,000 a month expense for marketing.

0500,000

1,000,0001,500,0002,000,0002,500,0003,000,0003,500,000

$

Year1

Year2

Year3

Year4

Year5

Revenue Growth

Total Revenue

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5.0 Operations Plan 5.1 Operations Strategy

The operations strategy focuses on providing the highest level of quality with the added value of an entire spectrum of male-oriented services in one comfortable, conveniently located establishment. Thus, the quality dimension will be emphasized on all levels from the employee to the customer. Quality must first be accomplished by the suppliers, so Gentleman Inc. will provide excellent compensation, starting salaries at 50% commission, above industry standard of 40-45%, as an incentive to attract a standard of qualified professionals with previous work experience in the field. Due to the high cost to maintain this quality and to stress the high end value to customers, prices will be premium for all services. Timeliness will also be provided for customers, with a variety of salon and spa services provided in one location. Busy corporate males do not need to drive a far distance before, during lunch break, or after work to receive the services they need to look and feel great.

5.2 Scope of Operations Due to the intensely customer involved nature of this business, all services will be performed in-house. The layout of the salon, illustrated in the diagram below, allows for an effective use of space that also ensures privacy for individual customers while they receive services. The front of the store is private, unlike traditional salons, which allow passerby�s to view customers receiving services. The receptionist desk is located in the front of the main lobby to allow her to greet customers as they enter and receive payments as they leave. The windows in the front of Gentleman�s Inc. display the inviting old-world style of the lounge and bar area, which will be appealing to men. Doors divide this comfortable lounge from the services that transform men from ragged and stressed to well-groomed and relaxed behind the scenes. The nail room will contain two manicure stations and one enclosed pedicure station, to provide customers with additional privacy. Customers exiting and entering the multi-station hair salon must pass through the retail store, which is conveniently located to ensure that customers cannot avoid the visual appeal of grooming product promotions. In addition this allows the expert stylists to direct men to the products used on their hair during styling, to take advantage of the high value of this type of personal selling. Private rooms for waxing, facials, and massages ensure the privacy that customers demand during the performance of such personal services. Storage closets are also located in the rear of the establishment to hold inventory and wash/dry towels and sheets, which need to be cleaned on a constant basis.

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Figure 5.2.1 Potential Gentleman Inc. Location Layout

Grooming products will be purchased from manufacturers and distributors with high quality brand images and then sold at the retail level at Gentleman Inc. It is important to carry several brands within each product line to be able to customize product suggestions to meet the demands of individual customers. Thus, relationships will be established with these vendors to gain some trade allowances for the value added through personal selling by salon professionals and through displaying the brand names in the salon/spa. Long term relationships will also be established with suppliers to arrange bulk ordering of usable supplies such as combs, brushes, foils, coloring dyes, soap, paper products, nail files, etc. to ensure a reliable supply at the lowest possible wholesale costs. All employees of Gentleman Inc. will be females to ensure maximum comfort levels for the male customers. This need was determined through the primary market research conducted. The largest number of employees will be the licensed professional beauticians including hair stylists, nail technicians, estheticians, and massage therapists. A receptionist will also be hired to answer phone calls, make appointments, and greet customers. She will need to have previous experience, preferably in a salon atmosphere, and have excellent interpersonal skills so that she is enthusiastic when interacting with customers. Cleaning staff is also necessary to maintain the high quality, sanitary atmosphere and perform services such as sweeping up hair, cleaning the beds, changing the sheets on the massage and waxing tables, washing towels, and emptying waste baskets. Bartenders are also necessary to provide beverage services to the customers in the lounge while they wait for their appointments.

nail

nail

massage

massage

waxing

facial / skin

retail store

hair

laundry / mgmt.

lounge

tvs

receptionist

bath

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5.3 Ongoing Operations

To successfully operate on an ongoing basis, Gentlemen Inc. will have to implement certain processes to ensure that the highest levels of quality and customer service are maintained. Initially walk-ins will be welcomed since the establishment will not be operating near capacity due to the learning curve associated with educating the male market on these services. However, after a customer base is established, appointments will take precedence and maintaining flawless schedules will be essential. All employees must agree to a set of employee guidelines that requires scheduled breaks and strict attendance policies to ensure that the customer demand is met and that no appointment is cancelled on behalf of Gentleman Inc. Professional beauticians will be obligated to provide the highest quality of service in the designated time allotted for each appointment to keep the schedule operating in a timely manner to avoid making the stressed and busy customers wait. Not only will the employees be enticed to follow these guidelines through the commission based compensation, but there will also be incentive for each and every employee to provide the customers with friendly and quality service through the customary tips based on performance associated with this profession. It is also necessary to implement an efficient customer database to provide a maximum quality of customer service unprecedented by competitors. This database will utilize software that files information about each customer including contact information and personal preferences such as past services provided, amount of money spent, amount of time spent at salon, products purchased, preferred stylist, and favorite beverage. There will be a fixed cost associated with the technology required for this database and the ongoing operation will be administered after initial training by the receptionist.

5.4 Operations Expenses

Employee compensation will constitute the largest operating expense. This compensation is commission based; therefore it will be a consistent 50% of sales revenue for the services performed by all professional personal care service providers. The cleaning staff, receptionist and bartender will each receive steady wages based on hours worked rather than commission. Cleaning staff and receptionist will be paid $10 and hour, while the bartender will receive $8 per hour because of the potential for tips from customers. Supplies that are used for services, mentioned above, also account for operating expenses equivalent to 8% of revenue22. This cost is driven by the amount of services provided, as they determine the total amount of supplies used. Grooming products that are purchased at wholesale value comprise another operating expense that is constantly replenished by the marked up retail products Rent and utilities are fixed costs, $5,500 and $1,200 per month respectively, and are based on current market average rates. Insurance expense is a variable 1% of revenue23. Marketing expense will be maintained at a constant $5,000 per month to maintain the education strategy, as well as to carry out various promotions and continuous market research.

22 MarketResearch.com Academic. Beauty Salons. April 1, 1997. 23 �Personal Services including Hair Salons.� http://www.bizstats.com/personal.htm, Nov. 28, 2003.

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6.0 Development Plan 6.1 Development Strategy

To capitalize on the opportunity within the male salon and spa segment, there are several factors which need to be developed for sustainable success. The key success factors are: ! Location: A key location is important because Gentleman Inc. needs to be

convenient and accessible to our target market in order for them to utilize the services. With customers� busy schedules, they will not venture far to come to Gentleman Inc. - Within Gentleman Inc.�s development, the search for the location is crucial

and so as much time as necessary will be spent on its determination.

! Convenience: Location is part of the convenience, however, offering desired services in one location with extended business hours in order for business after the normal work day also is considered. - The convenience depends on creating the systems and processes needed to

dictate the professional�s working hours. The computer system implemented will also increase convenience through the appointment scheduling without error to disrupt a customer�s schedule.

! Atmosphere: Most males do not feel comfortable in a female salon, not only

because of the normal clientele, but also the more feminine surroundings. To make the male customers more comfortable the environment and atmosphere is essential. - The internal design and construction of the atmosphere will help create the

desired environment. In addition, choosing quality materials and hiring personable staff will enhance the design of the business space.

! Reputation: Image and style are important, but the quality more so with males

who are trying to impress. Gentleman Inc. needs to create a reputation for high quality services with excellent customer loyalty. Developing relationships with customers allows for this development much quicker. - Reputation is based upon service quality and execution. Our hiring of

professionals that are personable and skilled will allow for this factor to be fulfilled. Superior customer service will also create the positive status for the success of Gentleman Inc. This service will be perpetuated with the equipment and training of employees. The customer data system will allow for personalized customer service and the attention that any man would want.

! Advertising: As mentioned in the Marketing Plan, advertising is crucial to the

success of Gentleman Inc. While some males may be eager for the services, the majority of the target market will need information to see the benefits of the business. - Pre-opening promotions and advertising will create the demand and interest

needed to develop long-term loyalty with the other attributes of Gentleman Inc.

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6.2 Development Timeline

Although a great deal of planning has created the business plan for Gentleman Inc., actual delivery and execution is crucial. With the operations plan, delivering quality services to the customer can be achieved, but Gentleman Inc. must bring together certain factors to be operational. The first major milestone that Gentleman Inc. must overcome is finding an acceptable business space in the downtown Boston area. Due to the special requirements and location necessity, it could take anywhere from days to months to find the space. As a result, the development timeline initiates with this in mind. With the acceptable business space found, Gentleman Inc. plans to hire an attorney to not only secure the business space but also start looking at the proper paperwork and licensing needed for Gentleman Inc. The business must then secure the business space to make sure that the model will become a reality.

Since a structure and organization will need to be decided upon, along with an attorney, an accountant will be hired. �Each legal structure offers organizational options which are appropriate for different personal situations and which affect tax and liability issues.24� The intricacies are difficult to understand and require someone with a larger knowledge base than the management. Other bureaucratic processes need to be handled such as business incorporation, business licensing, salon and spa licensing and trade name registration. A liquor license will also need to be acquired which is a lengthier process, requiring around two months. These processes require start dates past the beginning of the business space construction so that the business is actually in progress but need to be completed prior to other processes like hiring and training. With the business space secured, renovations will be made to the building. Because of the unique atmosphere and design of the business, renovations could be extensive. This is a critical part of the business. One of the competitive advantages of Gentleman Inc. is the atmosphere that is catered towards the male customer with the old world library style. During this same time, suppliers of the salon and spa equipment as well as retail products and products for salon use will need to be determined. While the renovations continue, the management of Gentleman Inc. will finish developing the systems and processes required for operations. Also, the operating equipment and point of sale devices will be found and ordered during this time. Before the renovations are completed, Gentleman Inc. will have the opportunity to begin hiring its professionals since the business needs time to ensure that applicants have the required experience and expertise. Once some hiring is completed, training on the determined systems and processes will be executed. Upon inspection of the building with all these tasks completed, Gentleman Inc. will be ready for operation.

24 �Starting a Business.� http://www.sba.gov/starting_business/startup/guide4.html, Nov. 15, 2003.

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Table 6.1.1 Development Timeline*

Phase 1 Phase 2 Phase 3 Action Week 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Hire Attorney Secure Business Space Hire Architect Internal Design Plans Created Building Materials Chosen Hire Accountant Renovations to Space Choose product suppliers Contracts with Suppliers Create Systems and Processes Hiring Professionals Training Design and Produce Signage Purchase Office Equipment Salon and Building Inspections Pre-start-up Promotions Business Incorporation** Business Licensing** Occupancy Licensing** Trade Name Registration** Liquor Licensing

* All estimations following the finding of acceptable business space ** Government processes take 30 days

6.3 Development Expenses

Several large investments are required to complete the process of opening Gentleman Inc. The two most important costs come from equipment and renovation cost. In order to purchase the salon and spa equipment as well as any technology, $200,000 will be spent. For renovations of the building including privatizing the rooms for services and the creation of the lounge atmosphere with leather and dark woods will require an investment of $200,000. To design the space an architect and internal design must be utilized for $2,000. There are other costs, but these are the fees for the business processes, which do not need a large investment.

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7.0 Management 7.1 Management Team

Heather Tomkinson - Currently pursuing a Bachelor of Science degree in Business Management from Babson College. She has worked at Orange, a large international corporation developing and conducting a market research plan for a new product being introduced into a mature market. Past laboratory experience provides the basis for the attention to detail and organization required for running a business. Strong communication skills allow her to interact with both investors and advisors to bring success to Gentleman Inc.

Christopher Gartlan � Currently working as the Marketing Director of an independent hotel in Lexington, MA. During this time Christopher has launched a successful discount program that offers all guests of the hotel savings at 18 of the local area merchants. Also, he will be co-hosting a series of Open Houses for Lexington�s corporate companies with the management of the hotel. He is presently pursuing the Bachelor of Science in Business Management from Babson College. Planned graduation is this spring of 2004, when he hopes to establish the New England market for a direct advertising company, Compass Cards that is presently based solely in Texas. Previous work experience as a Warehouse Manager lends a foundation for operations within a small collectables company. Erin Hurley � With immediate family working as licensed professionals in salons /spas, she has personal connections and access to the personal care industry. Currently working in the Admissions Office at Babson College, she has job experience in the Marketing and Human Resources fields. This knowledge and experience interviewing candidates and promoting the Babson brand will provide a valuable asset to the Gentleman Inc. management team in the hiring decisions and ongoing employee relations. In addition, she has experience working on the development of a small-start up company, where she created sales/marketing publications. Erin is currently pursuing a Bachelor of Science in Business Management at Babson College.

Rebekah Leger � Rebekah Leger has great experience in leading people as well as strong mathematical and analytical skills. She has three years of waitress experience, four years of teaching experience (swimming lessons), and has held many leadership positions in group projects throughout her high school and college career. She presently works for the Math Resource Center and is Treasurer of one of the largest organizations at Babson College, and she plans to be working for Fidelity this summer. She is currently pursuing a Bachelor of Science degree in Business Management at Babson College. Mike Sattler � He is a senior at Babson College has a major focus in strategic management and a background in finance and operations. Michael�s work experience includes three years at Wachovia�s Northeastern headquarters in the mortgage division. He is graduating with a Bachelor of Science in Business Management in May of 2004 and plans to work for Wachovia in Richmond Virginia as a head in the HMDA division. Michael is part of the Babson United Rugby Club and works part time as a waiter. Along with in interest in business he is an eager student of psychology and history.

Gentleman Inc. is also currently searching for experienced professionals to form an advisory board to provide guidance through the venture�s early stages.

GENTLEMAN INC.

PAGE - 30 -

8.0 Critical Risks

8.1 Internal Factors

There are several factors that are important to the success of Gentleman Inc.: ! Skilled professionals

- Qualified, experienced professional service employees are vital to success. To provide customers with the highest quality services and experience, these professionals must be present and willing to cater to the needs of customers.

- In the event that prospective employees are unqualified for these positions, Gentleman Inc. management will not settle for less and will intensify recruiting efforts. In addition, extensive employee guidelines will be established and regular staff meetings will be held to ensure that hired employees are a consistent, satisfied team.

! Appointments vs. Walk � in

- The business will be most effectively run through advanced scheduled appointments. As potential customers learn about Gentleman Inc. through promotions and word of mouth, they may want to walk in for an unscheduled appointment. This would result in inconsistencies in the future, as the clientele base increases and walk-ins are restricted.

- Despite inconsistencies, in the early stages of the business Gentleman Inc. will accept walk-in customers to increase revenues and clientele. Once a more steady customer base is established, appointments will be required for all services to ensure efficiency and organization.

! Cash Flow

- To continue operations it is necessary for Gentleman Inc. to sustain positive cash flow for the first year.

- To ensure the positive cash flow, the business assumed a $20,000 working capital value and $50,000 contingency. The loan amount was also over $100,000 more than start � up costs to give extra security.

! Service Consistency

- The creation of processes and continued training of personnel will allow for the service to be consistent.

- Higher than industry standard commission will give personnel an incentive to provide high quality service to all customers.

8.2 External Factors

Despite research on the industry and marketplace there are still several factors that could detrimentally affect the success of Gentleman Inc.: ! Location

- To gain the exposure to its target market, a location in the downtown Boston area is critical. One of the competitive advantages of Gentleman Inc. is convenience which will not be fulfilled without the location.

- If no real estate is available for lease in the financial district, other locations in the downtown Boston area will be sought. If for some reason no favorable

GENTLEMAN INC.

PAGE - 31 -

location could be found, wealthy suburban neighborhoods such as Wellesley and Newton will be considered.

! Interest in the Boston area

- Even though businesses with a similar model have found success in New York and Los Angeles, without the interest in the Boston area the Gentleman Inc. model will not be successful.

- Gentleman Inc. has already taken many steps to minimize this risk through extensive market research. Secondary research proved the current male spending in the Boston market and the opportunity for growth, while primary customer surveys and interviews were conducted to illustrate the strength of interest and potential demand.

! Effective Education

- Gentleman Inc. will develop business from males currently purchasing personal care services. However without the expansion of its customer base through education, Gentleman Inc. will gain only limited success.

- To avoid this stagnation of growth, Gentleman Inc. has developed a detailed marketing plan to ensure that brand and service awareness are established in the marketplace. If these promotions do not return significant customer growth, this marketing plan can be adjusted to more aggressively reach the targeted customers.

! Competitors

- Currently there are no competitors with the same business model in the Boston market. However, if new businesses begin entering the market or if current salon and spas target the male market, it could restrict Gentleman Inc.�s growth.

- Timing is critical to minimize the risk of competition dominating the marketplace. Gentleman Inc. must take advantage of this opportunity to be the first-mover in the marketplace. In addition, the business strategy ensures quality customer service that will increase switching costs for brand loyal customers of Gentleman Inc.

GENTLEMAN INC.

PAGE - 32 -

9.0 Financial Plan 9.1 Financial Assumptions

As with any business, Gentleman Inc. utilized many assumptions to create financial forecasts. Several categories of assumptions as well as their values were incorporated into the financial statements. Gentleman Inc. will be using a $600,000 bank loan at 10% interest annually over 20 years. This choice was made to keep the debt payments lower and cash flow higher. This is also a tax break over the life of the loan. The loan will cover start-up costs, which are based on the industry averages of health and beauty salons in large metropolitan areas such as Boston, New York and Los Angeles. To bring Gentleman Inc. to operation, it needs just over $500,000 in investment. The significant start � up costs are the $200,000 for equipment and $200,000 for renovations. There will also be a $15,000 initial materials cost and $5,000 other design requirements. The full statement is found in Financial Statements. For sales units and revenue growth Gentleman Inc. assumed a 10% growth rate for the first six months and then 15% growth for the third quarter and then 20% for the fourth quarter. In years two � four growth rates were 40%, 50%, 50% respectively. For year five, a growth rate of 4% was assumed because Gentleman Inc. reached its capacity. To forecast revenues, assumptions about what percentage of clients would utilize salon and spa services, as well as how many would purchase retail. In year one, it is assumed that 90% of clients would utilize hair care and that 20% of clients would use spa services. This is because some clients may use both services. In years two � five, Gentleman Inc. believes that hair care will stay constant since it is the main driver, however the spa service utilization from clients will increase 5% each year, obtaining 40% of client services in year five. Cost of sales is a large percentage of our total revenues at 50%. This is because the commission to our service professionals is 50% and then the gross margin is 50% of retail products. To generate expenses, several industry averages were found. Materials are a variable cost due to their consumption while performing the services, using 8% of revenue25. For insurance cost, Gentleman Inc. assumes it to be 1% of revenues26. Other expenses included marketing at $5,000 a month and a fixed rent expense of $5,500 a month (based on real estate listings in downtown Boston). Wages are also another expense for our cleaning staff, receptionist and bartender. A more detailed list of assumptions can be found on page 34.

9.2 Financial Forecasts

The following charts depict the financial health and growth of Gentleman Inc. in years one through five.

25 �Personal Services including Hair Salons.� http://www.bizstats.com/personal.htm, Nov. 28, 2003. 26 Ibid.

GENTLEMAN INC.

PAGE - 33 -

Chart 9.2.1 Revenue vs. Cash Flow vs. Net Income

Revenue vs. Cash Flow vs. Net Income

-5000000

500000100000015000002000000250000030000003500000

Year1

Year2

Year3

Year4

Year5

$RevenueCash FlowNet Income

Although Gentleman Inc. will achieve a negative income in the first year, by year two it will have broken even and gained over $100,000 in income and increase in following years. Gentleman Inc. will achieve a positive cash flow in the first year and grow almost exponentially to over $2 million by year five.

9.3 Break Even and Return on Investment

Break � Even

To break even on the $600,000 loan, Gentleman Inc. must service just under 36,400 clients. This is using the number of client services provided as the units. To calculate this number, the total service revenue was divided by the total number of services provided. This number equaled an average gross margin of $16.5 per service. Gentleman Inc. will achieve break even after 2.25 years with the number of clients needed.

Return on Investment

As with any start-up, the ROI will not be positive at the end of the first year. However with a significant growth in business Gentleman Inc. will return 20 - 126% over the following 4 years.

Year Return on Investment 1 -38% 2 20% 3 57% 4 116% 5 126%

GENTLEMAN INC.

PAGE - 34 -

9.4 Financial Statements 9.4.1 Financial Assumptions

! Sales (units) - First year ! Growth: 10% first 6 months, 15% for

months 7-9, 20% for last 3 months ! 90% of clients utilize hair services

- 7% of these clients purchase retail products

! 20% of clients utilize spa services - 3 % of these clients purchase

retail products - 50% of spa clients utilize

massage (constant) - 20% of spa clients utilize skin

care (constant) - 30% of spa clients utilize nail

care (constant) - Second Year ! Growth: 40% for the year ! 90% of clients utilize hair services



retail products - Third Year ! Growth: 50% for the year ! 90% of clients utilize hair services



retail products - Fourth Year ! Growth: 50% for the year ! 90% of clients utilize hair services



retail products - Fifth Year ! Growth: 4% (at capacity) ! 90% of clients utilize hair services



retail products

! Revenues and Cost of Sales

- Average Hair Revenue: $30 ! Cost of Sales: 50%

- Average Massage Revenue: $30 ! Cost of Sales: 50%

- Average Skin Care Revenue: $60 ! Cost of Sales: 50%

- Average Nail Care Revenue: $25 ! Cost of Sales: 50%

- Average Retail Revenue: $20 ! Cost of Sales: 50%

! Expenses

- Marketing Expense: 5000 per month

- Insurance Expense: 1% of revenue27

- Rent Expense: 5500 per month - Utilities Expense: 1200 per month - Materials: 8% of revenue28 - Wages ! Receptionist: $10 per hour ! Cleaning staff: $10 per hour ! Bartender: $10 per hour

- Interest Expense: 10% - Taxes: 30% of EBIT

27 �Personal Services including Hair Salons.�

http://www.bizstats.com/personal.htm, Nov. 28, 2003.

28 Ibid.

GENTLEMAN INC.

PAGE - 35 -

9.4.2 Statement of Start � Up Costs

Gentleman Inc. Statement of Start-Up Costs

Opening Materials 15,000 Equipment 200,000 Renovation & Construction 200,000 Brochures, Signage 3,000 Interior Design 2,000 Insurance 1,000 Legal 2,000 Prepaid Expenses Advertising 3,000 Rent 16,500 Utilities 1,200 Sub total Hard Costs 443,700 + Working Capital 20,000 + Contingency 50,000 Total Start-up funds required 513,700

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GENTLEMAN INC.

PAGE - 41 -

10.0 Appendices Appendix A Capacity Calculations

Time Required / Stations (hours) Number of Workers Hours per day CapacityHaircuts 0.75 3 14 56Massages 1.5 2 14 19Facials 0.75 2 14 37Waxing 0.5 2 14 56Manicures 0.5 2 14 56Pedicures 1 2 14 28

252 per weekday

Time Required / Stations (hours) Number of Workers Hours per day CapacityHaircuts 0.75 3 8 32Massages 1.5 2 8 11Facials 0.75 2 8 21Waxing 0.5 2 8 32Manicures 0.5 2 8 32Pedicures 1 2 8 16

144 per weekend

Capacity Per Week1404

Capacity Per Month5616

Capacity Calculations For Weekday

Capacity Calculations for Weekend

Capacity CalculationsGentleman Inc.

GENTLEMAN INC.

PAGE - 42 -

Appendix B Customer Survey Gentleman Inc. represents a business idea of an exclusively male salon/spa that will be located in the Financial District of Boston. This survey is to assess the viability of our business concept. Thank you for taking the time to fill it out. 1. How important is physical appearance to you? (Please circle)

Very important Important Not Important

2. How important is appearance in business? (Please circle) Very important Important Not Important

3. What is your company�s style of attire? (Please circle)

Casual Business Casual Semi-formal Formal

4. Where do you get your hair cut? (Please circle) Barber Shop Salon Other (please specify)

5. On a scale from 1-7, please indicate the importance of each of the following factors in your

decision to receive hair care. (Circle one)

Not important��...Very Important Convenience 1 2 3 4 5 6 7 Price 1 2 3 4 5 6 7 Image 1 2 3 4 5 6 7 Variety of Services 1 2 3 4 5 6 7 Quality 1 2 3 4 5 6 7 Atmosphere 1 2 3 4 5 6 7

6. How often do you get your hair cut? (Please circle)

At least once a week Every two weeks Once a month Longer than a month 7. When do you usually get your hair cut? (Please circle) Weekday Weekend 8. If during the week, what time of day do you go? (Please circle)

5-9 9-12 12-2 2-4 4-8 9. How much, on average, do you spend for a hair cut? (Please circle) $20 or less $20-$30 $30-$40 more than $40 10. What other hair services would interest you? (Please circle all that apply)

Styling Coloring Hair Growth Treatments Other (please specify) 11. Do you currently utilize massage therapy? (Please circle) Yes No 12. If yes, how often do you utilize massage therapy, on average? (Please circle)

Once a week Once a month 1 to 3 months Longer than 3 months

13. How much, on average, do you spend on massage per visit? (Please circle) $30 or less $30-$60 $60-$90 More than $90

GENTLEMAN INC.

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Appendix B cont� Customer Survey 14. Where do you usually receive massage therapy? (Please circle)

Health club Home Other (please specify) 15. On a scale from 1-7, please indicate your interest in the following services. (Circle one)

Not Interested��..��.Very Interested

Eyebrow waxing 1 2 3 4 5 6 7 Back waxing 1 2 3 4 5 6 7 Chest waxing 1 2 3 4 5 6 7 Manicures 1 2 3 4 5 6 7 Pedicures 1 2 3 4 5 6 7 Facials 1 2 3 4 5 6 7 Anti-aging services 1 2 3 4 5 6 7 Skin Conditioning 1 2 3 4 5 6 7 Tanning 1 2 3 4 5 6 7

Other (please specify) 16. How much time are you willing to spend per salon visit? (Please circle) Less than 30 minutes 30 minutes � 1 hour 1-1.5 hours Over 1.5 hours 17. To what extent would you feel comfortable visiting a female salon for you services? (Please

circle) Very comfortable Comfortable Not Comfortable Indifferent 18. Would a salon exclusively for males be of interest to you?

Yes No Maybe Why or why not?

19. Please indicate your gender preference in the following services. For example, would you prefer your hair cut by a male, female, or do you have no preference? (Please check one per service.)

Service Male Female No Preference Hair care Eyebrow waxing Back waxing Chest waxing Manicures Pedicures Facials Skin Conditioning

GENTLEMAN INC.

PAGE - 44 -

Appendix B cont� Customer Survey 20. On a scale of 1-7, please indicate your interest in the following services that could be offered

during the waiting period. (Circle one)

Not Interested��..��.Very Interested

Putting Green 1 2 3 4 5 6 7 Shoe Shining 1 2 3 4 5 6 7 Mini Bar 1 2 3 4 5 6 7 Gourmet Catering 1 2 3 4 5 6 7 Hot Shaves 1 2 3 4 5 6 7 TV�s 1 2 3 4 5 6 7 Music 1 2 3 4 5 6 7

21. On a scale of 1-7, please indicate your interest in the possible names for our exclusive male

salon/spa. (Circle one) Jonathan James Salon & Spa 1 2 3 4 5 6 7 Adonis 1 2 3 4 5 6 7 Other (Please Specify) 22. What is your age? (Please circle)

21-29 30-39 40-49 50-59 60 and over 23. Are you Married or Single ?

24. What is your yearly income?

Under $40,000 $40,000-$60,000 $60,000-$80,000 over $80,000 25. In what city or town do you live? _____________

GENTLEMAN INC.

PAGE - 45 -

Appendix C Customer Survey Results

50 46 92% Said physical appearance is of importance50 50 100% Said that appearance in business is of importance50 33 66% Said that their attire was semi-formal to formal50 18 36% Receive hair cuts in a salon50 43 86% Feel convenience is of great importance 50 39 78% Feel price is of great importance 50 21 42% Feel that image is of great imporance50 7 14% Feel that variety of services is of great importance50 43 86% Feel that quality is of great importance50 24 48% Feel that atmosphere is of great importance50 44 88% Get their hair cut at least once a month50 32 64% Get their hair cut during the week50 34 68% Spend $20 dollars or less35 22 63% Are interested in styling50 16 32% Utilize massage therapy50 7 14% Are interested in eyebrow waxing50 5 10% Are interested in back waxing50 9 18% Are interested in chest waxing50 15 30% Are interested in manicures50 10 20% Are interested in pedicures50 15 30% Are interested in facials50 10 20% Are interested in anti-aging services50 12 24% Are interested in skin conditioning50 16 32% Are interested in tanning50 22 44% Willing to spend 30 minutes or less in a salon50 23 46% Willing to spend 1-1.5 hours in a salon50 17 34% Feel comfortable in a female salon50 15 30% Are indifferent50 14 28% Would be interested in a male salon50 21 42% Said maybe interested in a male salon50 44 88% Either have no preference or prefer a female performing hair care 19 43% Prefer Female50 46 92% Have no preference or prefer a female performing eyebrow waxing 26 57% Prefer Female50 46 92% Have no preference or prefer a female performing back waxing 28 61% Prefer Female50 47 94% Have no preference or prefer a female performing chest waxing 26 55% Prefer Female50 50 100% Have no preference or prefer a female performing manicures 32 64% Prefer Female50 50 100% Have no preference or prefer a female performing pedicures 32 64% Prefer Female50 50 100% Have no preference or prefer a female performing facials 32 64% Prefer Female50 50 100% Have no preference or prefer a female performing skin conditioning 32 64% Prefer Female44 26 59% Are interested in a putting green45 23 51% Are interested in shoe shining44 31 70% Are interested in a mini bar43 12 28% Are interested in gourmet catering 45 28 62% Are interested in hot shaves46 43 93% Are interested in TV's45 40 89% Are interested in music49 38 78% Are between the ages of 20 - 4045 28 62% Are single47 12 26% Make under $40,00047 19 40% Make between 40 and $60,000 47 4 9% Make between 60 and $80,00047 12 26% Make over $80,000

# of Respondents Answering

Corresponding to the Statements

# of Respondents

For Each Question

Number Prefering Female

GENTLEMAN INC.

PAGE - 46 -

Appendix D Heather Tomkinson Resume

Heather Stacey Tomkinson Current: PermanentCampus Box # 2550 17 W illowleaf DriveBabson College Littleton, CO 80127Babson Park, MA 02457 303-933-8545781-239-4933 cell phone: [email protected] Education: Babson College, Babson Park, MA September 2001 � Presen

! Candidate for Bachelors of Science in Business Administration G.P.A. 3.68- Concentrations in Marketing and Entrepreneurship

Honors: ! Dean�s List all semesters ! Selected by faculty to be one of forty students to participate in Honor�s Program ! Recommended for Math Resource Center Consultant position based upon academic performance! Selected for 8 week program in at London School of Economics, including an internship and

coursework ! NEW MAC All-Academic Honors W inter 2002-2003

Lakewood High School, Lakewood, CO September 1997 � May 2001! International Baccalaureate Diploma

Work Experience: Babson College, Babson Park, MA September 2003 � PresenW riting Center Consultant

! Completed intense training for writing development, editing and consultation ! Perform consultations on course writing assignments for other students

Babson College, Babson Park, MA August 2002 � PresenFoundation Management Experience Mentor

! Selected by faculty for position to advise first-year students ! Evaluate perform ance on written assignments ! Collaborate with students in order to develop possible actions for business plans

Orange, London, England June 2003 � July 2003Marketing / Brand Strategy Department Intern

! Developed and implemented marketing research plan on Internet and mobile chatting trends for senior management

! Conducted competitor shopping research and report for senior managem ent ! Partic ipated with other team members in brainstorming and product positioning strategy sessions

University of Massachusetts Medical Center, W orcester, MA June 2002 � August 2002Medical Research Assistant

! Performed research on protein expression of Epstein Barr Virus ! Performed complicated procedures requiring precise m easurement and sequence ! Presented results of EBV specific CD4+ T cell paralleling EBV load over the course of acute

infectious mononucleosis to medical school community BABO Records, Babson College, Babson Park, MA January 2002 � April 2002Director of Sales in curriculum based student-run business for charity

! Contacted potential retail customers ! Created sales pitch ! W orked with a team in order to develop and implement a m arketing strategy

Extracurricular Activities: Babsonian Yearbook September 2002 � Presen

! Creating database and organization in order to create and edit archives Babson College Swimm ing and D iving

! Partic ipated in freestyle competitions of 50 yards and 1,000 yards September 2002 � March 2003 Computer Skills:

! Proficient in: Microsoft Office, Access, Minitab Statistical Software, Precision Tree Decisional Analysis Package, @Risk Simulation Package, Research tools (including Proquest, Hoovers, Factiva, Thom son Research)

GENTLEMAN INC.

PAGE - 47 -

Appendix E Christopher Gartlan Resume

Christopher J. Gartlan [email protected]

Babson College-Box 1184 30 Kiowa Trail Babson Park, MA 02457 Medford Lakes, NJ 08055 Home: (609) 953-0207 Cellular: (609) 304-1949

EDUCATION Babson College Babson Park, MA Candidate for Bachelor of Science in Business Management May 2004

Relative Coursework Babson College ! Business Analysis ! Marketing and Developing New Products ! Psychology of Leadership ! Core Management Courses (FME/2 semesters & IMC/3 semesters) ! Negotiations ! Entrepreneurship and New Ventures

WORK EXPERIENCE

The Battle Green Inn & Suites Lexington, MA Marketing Director June 2003-present ! Developed specific marketing strategies to be implemented to increase occupancy rates ! Created value-driven incentives for customers such as discount books for each guest ! Focused on re-building brand name within local community through series of Open Houses

Fajitas and �Ritas Babson College Competitive Analysis (part of Intermediate Management Core-student team) Fall 2001 ! Performed detailed business analysis of industry and firm ! Delivered operations adjustments to create an efficient restaurant service

The Truck Stop Babson College VP of Finance Spring 2001 ! Student-run business which operated a mobile snack car and online grocery delivery service ! Maintained financial information linking Excel files for sales inputs and purchase information ! First student-run E-commerce business in Babson history (online grocery delivery)

Medford Township Public Schools Medford, NJ Summer Painter Summers 2000-2002 ! Painted interior of schools and decided on supplies and schedules

Gartlan U.S.A. Inc. Berlin, NJ Warehouse Manager & Office Assistant Holidays 1998-2001 ! Received and shipped orders while maintaining inventory valued at $1.2 million of merchandise ! Executed tasks ranging from, but not limited within, filing to various mailings

ACTIVITIES/SKILLS

Habitat for Humanity Babson College Active Member Fall 2002-present ! Contributed in the construction of a house in El Paso, Texas during Spring 2003 ! Participated in fundraising events (ex. Haunted House for local children)

Boy Scouts of America Medford Lakes, NJ ! Achieved the rank of Star Scout 1988-1999 ! Held many leadership positions: Patrol Leader, Scribe, Venture Crew ! Learned skills that I value highly as result of Scouting

Computer ! Microsoft Office proficient (Word, Excel, FrontPage, PowerPoint, Outlook, Access) ! Computer and technology literate, with various operating systems and troubleshooting experience

GENTLEMAN INC.

PAGE - 48 -

Appendix F Rebekah Leger Resume

REBEKAH DORIS LEGER [email protected]

Current PermanentBox #1485 453 Fisher RoadBabson Park, MA, 01457 Fitchburg, MA, 01420 978-342-5430 EDUCATION Babson College Babson Park, MA

Candidate for Bachelor of Science in Business Management May 2005Cumulative GPA: 3.86, Dean�s List (4 semesters)

Average 10 hrs/wk in leadership activities St. Bernard�s Central Catholic High School Fitchburg, MA

Academic Head Master�s List: achieved above a 93 average (11,12) May 2001 2 Principal�s Academic Athlete Awards for achieving the highest GPA on the team

EXPERIENCE SoftSleepers Babson Park, MA

• Director of Finance, Community Service department Spring 2001 • Member of student startup business as part of Babson�s first year curriculum • Achieved top sales • Completed community service and donated profits to the Greater Boston Food Bank

Dunn-Gaherin�s Restaurant Needham, MA

• Waitress & bartender in training May 2003-present• Serve and respond to customer needs, demonstrate great attention to detail, adapt to an extremely fast pace environment

Boston Sports Club Wellesley, MA• Lifeguard & WSI (Water Safety Instructor) March 2003-present• Patrolled pool area and ensured safety among guests • Administered and evaluated group swimming lessons for children

Certified Water Safety Instructor Fitchburg, MA

• Self-employed Water Safety & Swimming Instructor May 2002-present• Organize, instruct, and evaluate group, private, and semi-private

lessons for all ages Il Forno Restaurant Fitchburg, MA

• Waitress December 2001-present Orchard Hill�s Athletic Club Leominster, MA

• Lifeguard & WSI Summer 1999-2002 Advanced Marketing Solutions (Contractor of Porsche Cars North America) Leominster, MA

• Customer Service Representative November 2001-June 2001• Directed communications around the office • Responded to customer inquiries and updated customer database

LEADERSHIP Office of Campus Life, Peer Mentor September 2003

• Co-teach First Year Experience to aid students in their transition into Babson College Math Resource Center, Tutor February 2003 present

• Assist students with math homework and problems Babson Dance Ensemble January 2002-present

• Treasurer-maintain, balance, and forecast budget • Dancer-perform in semester recitals

Walk for Breast Cancer, volunteer October 2002Greater Boston Food Bank, volunteer March 2002Interests: piano player Computer Skills: Microsoft Word, Excel, Access, PowerPoint, Outlook; Minitab

GENTLEMAN INC.

PAGE - 49 -

Appendix G Erin Hurley Resume

Erin Lynne HurleyCampus Box 1458 • Babson Park, MA 02457 • 781-239-4935

[email protected] Education:

BABSON COLLEGE WELLESLEY, MA Candidate for Bachelor of Science in Business Management May 2004

• Concentration in Marketing: 3.80 GPA (Magna cum Laude, Deans List) • Intensive coursework in Brand Management, Consumer Behavior, Market Research, and HR Management • Presidential Scholarship: Merit-based award offered to top 5% of admitted students per incoming class • Honors Program Study Abroad in Chile (Winter 2002), London Theater Program Study Abroad (Winter 2004)

Academic Achievements • Conducted research analysis on the effectiveness of buzz marketing campaigns in the non-profit sector, specifically

targeted towards anti-drug initiatives taken on by the federal government • Created a 40-page business plan for an innovative men�s spa & salon in Boston, MA, which included financial

analyses and projections, corporate and competitive strategy, and extensive market research

FOX CHAPEL HIGH SCHOOL PITTSBURGH, PA Senior Scholar (Highest Ranking). 4.0 un-weighted GPA June 2000 Senior Project: Coordinated Craft Show to raise $2000 for the Make-A-Wish Foundation

Experience:

BABSON COLLEGE ADMISSIONS OFFICE BABSON PARK, MA Admissions Intern Fall 2003-Present

• Interview prospective applicants to the college to determine fit with the Babson culture • Assist in planning special events for prospective students including Open House, Overnights, Class Visits • Coordinate the selection process for the exclusive Women�s Leadership Scholarship • Plan and schedule travel and events for Admission staff road shows around the country

JEM SEAL CO. GIBSONIA, PA Sales/Marketing Coordinator Summer 2003, 2002

• Initiated the sales and marketing efforts for this small manufacturing startup • Designed and compiled a sales brochure that details the goods and services provided by JEM Seal • Developed an extensive client database to aid in enhancing customer relationship management

BABSON COLLEGE ALUMNI RELATIONS BABSON PARK, MAAlumni Programs Assistant Fall 2001-Spring 2003

• Prepared correspondence with college alumni for special event programs and functions around the country • Compiled job descriptions and requirements to be posted on the Alumni website

DICK�S SPORTING GOODS, INC � Corporate HQ PITTSBURGH, PA Accounts Payable Internship Summer 2001

• Researched and adjusted invoices and receipts to enable payment of large supplier accounts • Interacted with the corporate accounting division to deliver accurate data for monthly book closings

BABSON BEAVER WEAR BABSON COLLEGEVice President of Community Service Spring 2001

• Sat on the board of this student run venture to sell custom clothing to Babson students, faculty, and organizations • Coordinated weekend service events for over 30 employees with �The Friends of the Homeless of the South Shore�

Activities/Interests:

• Campus Activities Board: Knight Party Chair. Organized, coordinated, and successfully executed creatively themed dances/social events for student body of 1700. (Spring 2001- Spring 2002)

• Babson College Varsity Lacrosse: Two year commitment and contribution to team • Wellesley Youth Lacrosse: Volunteer Coach teaching young girls fundamentals and teamwork. (Spring 2003) • Country Music, Guitar, Poetry, and Writing Children�s Books

Computer Skills:

• Microsoft Office: Access, Excel, PowerPoint, Word

GENTLEMAN INC.

PAGE - 50 -

Appendix H Michael Sattler Resume

Michael Thomas Sattler [email protected]

203.645.4587 Campus Address Permanent Address Babson College Box 2442 19 Ridgewood Rd Babson Park MA 02457 Meriden CT 06450 Education Babson College Wellesley MA Candidate for Bachelor of Science in Business Management Concentration in Strategy and Operations Cumulative GPA 3.00 Coursework: Real Estate, Plan and Control, Strategic Management, Entrepreneurship Experience Wachovia Mortgage Waterbury CT HMDA Specialist Summer-Winter

• Assistant to underwriters and auditors within Wachovia 2000-2003 • Developed Access programs for my department

Bertuccis Brick Oven Pizzeria Wellesley MA Server/ Shift Manager Spring 2001-Present

• Waiting tables, customer interaction • Opening and closing responsibilities

Beaver Beverage Delivery Vice President of Marketing Spring 2001

• Student-run business at Babson College during FME • Developed unique marketing plans for each campus residence • Managed 5 member marketing team which included motivating and evaluating

Computer Skills Microsoft Access, Excel, PowerPoint, FrontPage Minitab Uni-Form (specially for mortgage applications) Bloomberg Activities

• Part Time Lifeguard/ Swim instructor • Babson College Rugby • Camping/Hiking • Golf

GENTLEMAN INC.

PAGE - 51 -

Student Project: Business Plan Competition Entry in Spring 2004

Documents

Transcript of Student Project: Business Plan Competition Entry in Spring 2004