1. 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

2. 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.

3. 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

4. Financial budget
Extra Cash = 2,198

5. 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.

6. 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.

7. 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.

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

9. 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.

10. 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%

11. 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%

12. 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

13. 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.

14. …Questions?

15. 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.

16. 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

17. 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%

18. 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

19. 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.