BELLE et BEAU CHEVEUX Kyle Fedoruk

What is Belle et Beau Cheveux? Hair Studio Located in St. Anne, MB that offers all hair services (cuts, colors, styling) as well as waxing and make up services Brand Statement: “The best hairstyling experience close to home” (Referring to the rural area of South East Manitoba)

PRODUCTS & SERVICES Haircuts, Styling, Colour, Make-up, Waxing & a small retail section of the products that are used in our studio (Eufora hair products)

Capital & Financial Budget Capital Budget: Land 50,000 Building 100,000 Furniture & Fixtures 14,258 Total 164,258 Finance Budget: Don’t have this amount of Equity yet, so wouldn’t start up business until the $65,000 worth of Equity can be contributed Bank Debt 100,000 Equity 65,000 Total 165,000

Target Market Value Proposition: To provide customers with a quality hair styling experience closer to home. This will help customers save time and money travelling farther distances (Winnipeg or Steinbach) to receive quality hair styling.

Segmentation Landmark Richer Blumenort Total size of market is approx around the 4500 mark which includes the towns of St. Anne (1626), Blumenort (approx.1000), Richer (approx. 500), Landmark (approx. 1300) plus other smaller towns around these areas as well Steinbach population b/w 13000-14000 (may draw some friends and family from there but this is where the heavy competition lies) Radio, Website, Newspaper, Flyer Drop (Coupons) Blumenort

Positioning Map Quality Service Convenience Belle et Beau Cheveux Avenue Hair Hairline Rootz Vivid Abstract Quality Service vs. Convenience – All priced about the same (Competitive Pricing) Bell et Beau Cheveux most convenient to the market outside of Steinbach (Not as far to drive and will take less time out of people’s busy lives) Convenience

What Needs to Happen? Year 2016 2017 2018 2019 2020 Maximum Number of Customers/day 24 Number of Customers/day (Base Case) 10 12 14 15 16 Customers % Max Capacity 42% 50% 58% 63% 66% Max. Customers vs. Base Case

Base Case Vs. Breakeven Base Case – Blue Breakeven - Red

Proceed with this Venture? Owner's Compensation Year 2016 2017 2018 2019 2020 Owner's Salary 29,640 36,457 42,974 48,453 52,148 Dividends - 1,440 11,848 19,521 27,504 Total Owner's Compensation 37,897 54,822 67,974 79,651 Mention, haven’t been able to sit down with Carole yet to discuss it, but looking at these numbers taken from the base case, by year 3 and forward, seems like it could be feasible and could make a comfortable living off of running this business.

QUESTIONS?

Location Approx. 50km SE of Winnipeg just off #1 Highway, Pop: 1626 Location in town, just off of main street in which there is plenty of traffic going down main street and a sign will be made in order to point the direction of the new salon

Floor Plan Styling Stations Front Entrance Waxing/Office Back Entrance Styling Stations Storage Closet Manicure/Pedicure stations can be added in if we decide to offer those services in the future

Human Resources Staff: Owner/Manager (also a stylist) 1 Other Employee: 1 Stylist, Store Hours: Sunday – By Appointment Only Monday – Closed Tuesday & Saturday – 10am to 6pm Wednesday to Friday – 1pm to 9pm Receptionist duties will be performed by both the Owner/Manager & Stylist until such time it is deemed a receptionist is needed Both Stylists will have keys to the building in case of a Sunday appointment with a client. This will also give the other employee opening and closing responsibilities.

Sensitivity Analysis Yr 5 Owner Customers/day Average 5 year Profit Net Payback Compensation 5 Bankrupt 8 8,356 35,801 57,692 10 (Base Case) 18,328 122,956 79,651 15 42,274 322,576 134,077 20 52,497 374,042 136,260 24 55,317 388,140

Sensitivity Analysis Yr 5 Owner Price/Day Average 5 year Profit Net Payback Compensation 20 Bankrupt 30 7,831 31,214 56,536 35 14,392 88,553 70,983 38 (Base Case) 18,328 122,956 79,651 45 27,513 203,231 99,878 50 37,074 260,569 114,325