PROSPECT AND CHALLENGES OF ESTABLISHING A BARBING SALON

Prospect

Establishment of barbing salons is probably the main source of self-employment for many youths in the country today. Everywhere one goes within a city or local community, barbing salons are a common feature, and they are owned and operated by the youths. Establishing a barbing salon is a viable business and have a very huge prospects as both old and young can hardly live without having a haircut, thus providing an avenue for wealth creation through the establishing of this noble outfit.

 

        Challenges

Owning any sort of small business in a struggling economy like Nigeria is difficult with barbing saloon inclusive. With passion for beauty and hair care, one can wade through this challenges and make a leaving. The following are the biggest challenges faced when running a salon:

1. Fees: The fees incurred when maintaining any type of small business add up as weeks and months progress. Maintaining chairs is sometimes the hardest. But many hair and beauty salons go for state of the art equipment. The more lavish and adjustable your hairs, the more it will cost. Everything depends on decor, and the clients you're trying to attract. Offering up products to sell is also an expense, but one that you're quickly reimbursed on.

2. Employee Incentives: If a hair dresser or salon employee believes they will be taken care of by your establishment, they will feel inclined to stay with you through good times as well as bad. Consider offering incentives, such as bonuses or even health insurance. The right POS software for beauty salons can help you keep track of who contributed what to the salon.

3. Schedules: Flexible scheduling is another employee incentive that lets beauticians feel more in control of their environment. It can also let them build a greater following, letting return customers come in when they're available. Scheduling shows your employees that you care about their needs. Point of Sale software for beauty salons allows you to keep both customer and employee incentives in line with the click of a mouse.

4. Regular Customers Vs Walk-ins: Speaking of customers - there are two kinds who will typically come into salon: return and walk-ins. The majority of your business may rely on return business; those who come in and see the same beautician every few weeks or months. Having discounts for returns is a great way to show how you love anyone who gives the salon repeat business. Walk-ins should always be welcomed too. Display prices at the front desk or near an entrance, along with promotions. This will help attract new business. POS software for beauty salons makes keeping records of discounts and promotions extremely simple.

5. Staying Competitive: Above all else – beauty salons, just like many other small businesses, have to stay hip. Teach your beauticians the latest in haircare design and product information. Offering different services (haircuts, dying, nails, etc.) will appeal to a variety of potential customers.

6. Financial Problems As summarized by Stevenson and Lundström (2001) access to financing is one of the oldest small business enterprises policy issues; it has a history of at least half a century (e.g., the US Small Business Act of 1953; Canada’s Small Business Loans Act of 1961). Small firms were disadvantaged in capital markets because they lacked the collateral security or knowledge to secure conventional financing, were perceived as higher risks and deemed less profitable. Therefore, small firms lacked access to the resources necessary to expand, modernize or grow. Inegbenebor (2006) stresses that even though banks are a major source of funds for small and medium enterprises in the developed world, in Nigeria, this is not the case.

7. Managerial skills Lundström (2005) stated that the ability to enterprise underlines the technical and business conditions necessary for running companies. As such, entrepreneurs need a collection of competencies in order to manage these functions. For example research and development (R&D), financial control and market management all demand education and experience. Rapid developments also require current advanced knowledge in multiple business sectors. The management of business also demands efficient training in leadership, production, financial control, marketing, etc. Ude (1999) claimed that small business owners mostly in developing countries have the problem of mastering the art and science of managing their business and this has posed a great problem to small scale enterprises development, growth and sustenance. Most often, the owners of small scale enterprises pay more attention in acquiring skills in producing one item or the other while they pay little or no attention on how to acquire knowledge in managerial skills concerning their businesses. According to Okafor (1984) this managerial problem comes to manifest especially when their businesses have grown, they find it difficult to cope with new challenges they are faced with. As a result of this, some of them remain at the small level instead of growing with the expansion that is supposed to be associated with business if properly managed.

8. Infrastructure and Technological Application As summarized by Aiyedun (2004:4) “this is another area worthy of note concerning the problems facing small business enterprises in Nigeria”. Inadequate and inappropriate technology; or non use of modern equipment, lack of engineering capacity to translate scientific research results into finished goods and maintain existing machinery as well as low level of entrepreneurial capacity in their production has posed a major treat to the growth and development of small scale enterprises in developing countries. Most of small business enterprises in Nigeria still use crude methods in their production of goods and services thus resulting to their goods being looked upon as inferior ones. Some of the small business owners still lack the appropriate training in using modern technologies for their businesses. Governments at various levels should encourage proper development of infrastructure and technology, that is, the relevant qualified and well-trained technical and management manpower, as well as the physical plants, materials and other facilities required to respond to the needs of small business enterprise.

 

BUSINESS PLAN FOR THE CUTTING WAVE BARBER SHOP

Executive Summary

The Cutting Wave is a modern barber shop that offers today’s gentlemen a setting where they can sit back, relax and experience the “New Age” style of male grooming services. The Cutting Wave is aimed towards today’s adult professional and urban market and a discerning customer base that will add tremendous value to the local community. The combination of “World Class Services” and comforting atmosphere will firmly establish the Cutting Wave as the place where today’s gentlemen in the greater area can come relax and receive quality grooming services. We intend for our business to become very profitable, by focusing on increasing the client base and making it the sought after destination for a wide variety of men.

Having worked in Lokoja area for over 17 years, give us an advantage over new startup business that lack that connection to both people and business in the local community. We have a huge following, which makes us confident that we will be a success from day one. Our goal, beyond becoming a profitable business, is becoming a trusted place whereby the clients in our community can come to relax their minds and bodies and network with their friends and colleagues.

 

Company Summary

The Cutting Wave is a full-service gentleman’s barber shop dedicated to consistently providing newly discovered haircuts and grooming services while providing an enjoyable, relaxing atmosphere at an acceptable price. Our motto: “Where Your Appearance Is Our Reputation.” The timing can never be better for this type of business venture. With the increasing number of people moving here, the abundance of well-established businesses, coupled with the lack of quality male grooming services in the nearby area lead forced us to build one from the ground up.

Keys to Success

1.     Location: Providing an easily accessible location for clients.

2.     Environment: Providing a safe comfortable environment that offers relaxing and professional service.

3.     Convenience: Offering our male clients, both young and old, a wide range of services with extended working hours at competitive prices.

4.     Reputation: Provide superior personal service, quickly and professionally.

5.     Effective advertising: Focus advertising in the local area with radio promotions and flyers.

 

Services

The Cutting Wave is considered a full-service barber shop – with services exclusively for men. We offer our clients a gentleman’s atmosphere, with complimenting services and products that include:

1.     Hair: All modern styles and traditional haircuts

2.     Shaves: Traditional straight edge razor shaves, hot towels, and balm treatment (Alternative shaving methods also available for those with sensitive skin).

3.     Hair Removal: Hair removal on neck, nose and ears.

4.     Shoe Shine: Shoe shine service available in waiting area or while services are being performed.

 

Market Analysis Summary

The Cutting Wave will focus on the professional male. An Internet study revealed that 85% of professional men had personal hair grooming services performed during the workday. The subject center fits the demographics of our business. There are many professional buildings located within a five-mile radius. In addition, there are over 40,000 homes located within a five-mile radius.

Strategy and Implementation Summary

1.     Emphasize quality, originality, and “World Class Service”. We will differentiate ourselves from our competitors by offering a certified professional staff that is well trained in understanding the dynamics of customer service so as to maximize the connection themselves and their clients, thereby exceeding their clients’ expectations.

2.     We will provide a comfort and engaging atmosphere. From our professional staff to the environment and setting of our barber shop, the Cutting Wave will distinguish itself as a completely trustworthy and soothing destination where clients can enjoy being taken care of while escaping the stress of their everyday lives and enjoying the camaraderie of friends and colleagues.

 

Competitive Edge

Our competitive edge is a combination of our unique services, outstanding location, and our interaction with our clients. By providing our clients a gentleman’s atmosphere and provide world class services, we will build relationships of trust and satisfaction. Our clients will come to depend on our unique services and fulfilling environment.

 

Marketing Strategy

Our marketing strategy is the key to our success:

1.     Emphasize our name and unique services and environment through advertising.

2.     Focus on the convenience of our location.

3.     Build community relationships and corporate relationships through unique and quality service.

 

We will focus our efforts and resources towards advertising on radio, flyers and billboards. Television and Print ads can cost hundreds of thousands of dollars to get off the ground. Between getting copywriters, art directors, screen actors, models, video equipment, and studio time, just producing a TV or Print advertisement is extremely expensive. Thanks to technological advances, the costs of radio ad development have come down dramatically over the last decade. This includes creative strategy, copywriting and production. When done correctly, a direct response radio advertising campaign can yield profitable new customers and incredible ROI. Billboard marketing is an effective tool to use because it offers a simple and concise advertisement solution that is an extremely cost effective investment.

Some of the benefits include:

1)    Constant reminder of your message throughout the year (24 hours a day, 365 days a year)

2)    Sustains name and image awareness-can’t be turned-off, tuned-out or put aside

3)    Designs that capture and maintain a reader's attention

4)    Serves as a directional guide for potential customers

 

Management Summary

The management philosophy of The Cutting Wave is based on the respect of all employees, respect for every client, and individual responsibility. The management team will consist of the owner, shop manager, and assistant manager (if deemed necessary). We will hire only those who demonstrate the qualities necessary for working in a professional environment, and the willingness to move forward to continuing education.

 

Financial Plan

The premier element in our financial plan is initiating, maintaining, and improving the factors that create, stabilize, and increase our cash flow. The Cutting Wave is seeking to raise 250,000 from a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.

Start-up Funds
Working Capital & Equipments	110,000
Initial Lease Payments	50,000
Marketing Budget	20,000
Miscellaneous Cost	20,000
Startup Supplies	30,000
Security Deposits	20,000
Total	250,000

The Cutting Wave expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.

 

 

THE ROLE OF TECHNOLOGY IN BARBING SALON SKILLS

 

THE ROLE OF TECHNOLOGY IN BARBING SALON SKILLS

Technology is a general-purpose technology and as such has a pervasive impact on the economy. It introduces a new paradigm for the configuration of economic activities radically changing the approach to technology for development (UNCTAD, 2007).

 

The term Information Technology (IT), as a component of ICT, refers to the gadgets with which information is generated and disseminated.  It includes such gadgets as the Telephone; analog, digital or GSM; the Television, Radio, Fax and all other emerging technologies that make it possible to communicate ever more conveniently across borders and cultures. The ICT revolution is an all-purpose revolution that has been described by Blinder (2006) as the third industrial revolution. And like the effects of the two previous industrial revolutions, it has stimulated growth in generally all facets of economic interactions, not least of which is the development of entrepreneurial skills and abilities. Its role has changed the notion of “entrepreneurship” from a time and space limited entity to a rather more pervasive concept involving the use and modification of intangibles such as ideas and experiences in the creation of equally virtual and intangible enterprises.

Technology has created a platform for ease of exchange of information and ideas between people. The internet for instance has provided a virtual environment where anybody can set up a business without the stress of seeking out a particular location and/or physical facilities.

The rapid growth and expansion of ICT has become a phenomenon that touches every aspect of human life. From the home front to the work place, ICT have had a tremendous effect on the way things are done. Mothers can now order groceries and sundry items from the comfort of their kitchens and at the same time monitor their children’s itinerant movement in school.

 

With the proliferation of new technologies such as super computers, the Internet and Satellites, a communication revolution was unleashed on the world which gradually became a smaller village of a conglomerate of cultures and nationalities. This has been termed “globalization”, that is, a global village where borders and boundaries are continually being eroded by factors beyond the control of any singular government or cartel. With this trend also comes a new generation of risk takers, innovators and enterprise builders. These are the new generation of entrepreneurs whose calculated risk-taking is built upon the ICT revolution.

 

Mobile telephony has become the most important mode of communication in developing countries. While internet access has become a reality for many businesses and public institutions, and for individuals with higher levels of education and income, for the vast majority of low-income population mobile telephony is likely to be the sole tool connecting them to the information society in short to medium term. Nigeria was not left out of the ICT blitz with the launch of the Global System for Mobile (GSM) in the country in 2001. The rate of acceptance of the new technology in the country bewilders the analysts and other observers. GSM as a factor of ICT brought about marked improvement in the way many things are done in the country.

 

ICT manifests in all aspects of lives, be it health, education, etc, and it is a pathway to achieving the Millennium Development Goals (MDG), which are consistent with Nigeria’s National Economic and Empowerment Development Strategies (NEEDS) instituted in 2004 (Alumanah, 2005).  Most public services in advanced countries are ICT-oriented.  Most offices, even homes are equipped with computers.  These are expensive in terms of cost of materials, installation and maintenance in low per capita income countries like Nigeria.  Irregular power supply and the relatively underdeveloped communication system, among other poorly developed infrastructures, are also sources of worry in a country like Nigeria to make efficient and effective use of ICT. In addition, the cost of basic ICT training has been overwhelming, considering the fact that computer literacy is at the core of most types of training and has continued to positively influence many forms of training at basic and advanced education levels. 

 

Entrepreneurship however, is the recognition of an opportunity to create value, and the process of acting on this opportunity, whether or not it involves the formation of a new entity. While concepts such as “innovation” and “risk taking” in particular are usually associated with entrepreneurship.

 

Particularly the technology adopted in the BARBING SALON are telephones (GSM) for communication, POS to facilitates payment for services, Cable TV for entertaining clients, Internet (blog, social media etc) for advertising and creating awareness about the establishment.