Every Man’s Hygiene and Grooming Store Made for Men Every Man’s Hygiene and Grooming Store Welcome to Made for Men. Every Man’s Hygiene and Grooming Store. Jordan McCool-Morin

Made for Men is a high quality retailer of Men’s hygiene and Grooming Products located in Midtown Plaza. Our mission is to revolutionize the morning routine, to turn the chore of shaving into an art form, and to provide the opportunity for every man to start each day looking his best, feeling confident, and being ready for whatever lies ahead.

Leasehold Improvements Total Capital Required Furniture, Fixtures and Equipment $13,384 Leasehold Improvements $7,800 Total Capital Required $52,802 Net Working Capital $31,618 The space to be leased would require some renovations to design the store in a way that will attract men and create a welcoming environment. These leasehold improvements would total $7800. Furniture, fixtures and equipment needed totals $13,384 for items such as shelving, computers, front desk, and light fixtures to name a few. Finally, our net working capital, consisting mostly of inventory, would total $31,618, giving us a capital requirement of $52,802

Financial budget Extra Cash = 2,198

The Market the global market for men’s cosmetics and grooming products is booming (Premium BN), the market shows strong performance and high growth potential I’m sure you are all familiar with nivea for men and dove men + Care. Suppliers are catching onto this trend and companies are starting to make more and more products specific to men. In 2013, retail sales of men’s grooming reached C$718 million and it was found that every nine in ten men use some sort of grooming products today, claims The NPD Group. According to Kline & Company, sales of men’s cosmetics and toiletries in the U.S. could hit US$ 3.2 billion by 2016 The Art of Shaving has averaged 30 percent annual sales growth throughout its decade-long existence and today reaches sales of 15 million dollars (CNN Money). The huge success of “The Art of Shaving” in the USA proves that there is a strong market for this type of business in Canada and proves that men do in fact desire these types of products. Despite the growth and increasing popularity of men’s hygiene and grooming products, a potential risk in the market is the fact that men are reluctant to enter outlets that are perceived as a women's only zone. (PBN) Made for Men will be designed to attract men and make them feel comfortable shopping in our store to minimize this risk. Not many barriers to entry, however, with the first movers advantage, we will be able to capture a good portion of the market.

What We Offer… Convenience CONFIDENCE Quality At made for men, we offer every single product that men need for their morning routine. Everything from razors, shaving brushes, shaving cream and oils, aftershave, face wash, lotion, soap, beard cream, cologne, deodorant, hair products and more. But what separates us apart from competition is that we offer the convenience of offering all of this in one central location. What we truly offer is the feeling of confidence. This is achieved by offering a variety of high quality hygiene and grooming products and top notch grooming service that is unmatched and will have men walking out of our store with their head held just a little bit higher. Our products and services would be of the highest quality because every man deserves the best.

Who we offer to… There are two major target markets that we would be going after: 1. A Primary target market of Men living in Saskatoon or within a 100km radius of the city who are between the ages of 18 – 65. One example could be the business man who knows that self-presentation is important, and that looking and feeling confident is a must in order to get that upcoming promotion. Another example could be men who are looking to impress that special someone, or build their confidence to talk to women. The secondary target market would be women who are looking for the next greatest gift idea for their boyfriends, husbands, brothers, or male friends.

Quality Price Overall, this positioning map would be about where we stand in relation to competition.

Promotion Grand opening with c95/Rock 102 live on location with a free sample on any purchase for the first 50 customers. We would also promote recent trends such as movember and decembeard and this would mainly be through our Facebook and Twitter pages. Once established, we would donate 3% of sales to prostate or testicular cancer research. As a start-up business, we would look to pitch our business at the Pitch Party and have a booth set up after the program to spread awareness Lastly, we would like to promote on campus through Captive Audience who advertise in the arts tunnel and washrooms and the U of S.

Profitability 2015 2016 2017 2018 2019 Net Profit Margin 7% 12% 15% 8% 8% 13% 18% AVERAGE NET PROFIT MARGIN = 21% Net income increased by 97% in year two followed by an increase of 39%, 22% and 19% in following years Average 5 year net income of $56,692 2015 2016 2017 2018 2019 Net Profit Margin 7% 12% 15% 17% 18%

Breakeven 13% 22% 28% 31% 35% Percent Cushion Breakeven customers per day stays around 22 for the five years while our base case estimations experience growth of 10% in year two, 7.5% in year three, followed by 5% growth in year four and five. This gives us a cushion of 13% for year one, increasing to 35% by year 5 Percent Cushion 13% 22% 28% 31% 35%

Critical variables ATTRACTING ENOUGH CUSTOMERS PER DAY SHIPPING COSTS There are other risk factors as well, but shipping costs and customers per day are the two most critical variables for this business. Shipping Costs for Inventory – TO GET MOST OF THE PRODUCTS I WOULD WANT TO SELL IN MY STORE MEANS THAT we would have to ship from the states, which would be pricey. A sensativity analysis based on customers per day also showed to be pretty sensitive with only a 4 customer per day drop causing the business to likely go bankrupt. SHIPPING COSTS

ROI = 25% Is it feasible?... Requires a strong focus on marketing ~$50/Hour compensation by year 5 Relatively Small Initial Investment ($20,000) With a very detailed marketing plan I think the business could potentially be an investment worth pursuing. $20,000 seems like a lot at this point to invest, but in the big picture it is a very small investment and worse case scenario, I’d be down 20K and gained plenty of experience. Maybe something to keep in mind for the future.

…Questions?

Year 5 Owner Compensation Sensitivity analysis Customers/day Average 5 year Profit Year 5 Owner Compensation Year 5 Owner Hourly Wage 20 7,578 65,825 25.32 22 23,949 92,440 35.55 24 40,321 110,263 42.14 26 (Base Case) 56,692 128,086 49.26 28 72,735 145,909 56.12 30 88,463 162,235 62.40 Customers per day is the most critical factor in the success of this business. As you can see, anything less than 20 customers per day and the business would be bankrupt. This works out to 2 customers per hour, which seems achievable, but is still risky.

Customers per Hour: year 1 year 2 year 3 year 4 year 5 3 4 Schedule 2: Revenues 2015 2016 2017 2018 2019 Number of Customers/day 26 29 31 32 34 Number of Days/year 360 Average Purchase/customer 35.00 35.88 36.77 37.69 38.63 Total Sales 327,600 369,369 406,998 438,032 471,432 Growth Rate Number of Customers   10% 7.5% 5% Customers per Hour: year 1 year 2 year 3 year 4 year 5 3 4

Total Operating Expenses 174,817 176,087 179,835 183,762 187,874 Operating Expenses as Percent of Sales 53% 48% 44% 42% 40% Wages as Percent of Sales 30% 28% 26% 24% 23% Wages as percent of Gross Sales 50% 45% 38% Marketing as percent of Sales 5% 3%

Schedule 4: Operating Expenses 2015 Accounting and Legal 600 Advertizing (Marketing) 15,950 General Supplies 1,000 Insurance 800 Lease 30/sq.ft. 28,500 Telephone and Internet 1,200 Uniforms Occupancy Cost 10/sq.ft. 9,500 Repair, Maintenance 1,500 Wages 99,235 Employee Benefits (salaried) 8.19% 4,095 Employee Benefits (wages) 13.96% 6,873 Misc Variable Costs % Sales 0.25% 819 Capital Cost Allowance 1,494 Debt Interest 2,450 Total operating Expenses 174,817

Customers Per Day Determination 24 individuals enter in one hour 11 of which made a purchase ~ 90 customers per day In Canada for almost 20 years An estimate of 24 individuals per day is more reasonable for Made For Men.