1. Skilled Klipz Barbershop Michael Andrade & Eric Bueno 11 th Grade Age 16

2. Business Profile  Our business is a barbershop, the reason why we have selected this as our business idea is because we feel that our service would satisfy the customers more than anyone else's. We know that many people are looking for a barbershop with great services and hospitability.  Type of Business : Our business is a service. Our business is a service. We will satisfy a customers need by giving them a good service at an affordable price. We will satisfy a customers need by giving them a good service at an affordable price.  Legal Structure : Partnership Partnership Our skills and contacts are expanded, and also we can pool resources and get more work done. Our skills and contacts are expanded, and also we can pool resources and get more work done. 1

3. Opportunity  Define opportunity Gives a customers the satisfaction of having their hair looking great. Gives a customers the satisfaction of having their hair looking great. We get to the point and make it quick. We get to the point and make it quick. We provide refreshments for customers to purchase. We provide refreshments for customers to purchase.  Qualifications We will get our barber licenses by 2011. We will get our barber licenses by 2011. We know how to cut hair. We know how to cut hair. We know customers and contacts that are barbers. We know customers and contacts that are barbers. 2

4. Consumer Profile  By Location South end of Hartford South end of Hartford  By Population 4+ 4+  By Personality Clean and presentable people. Clean and presentable people.  By Behavior Loyal customers if good service Loyal customers if good service  By Income Everyone would get a haircut no matter what circumstances. Photo of a consumer 3

5. Competition Competitive Advantage Better quality and a good persistant speed. CompetitorPriceQuality Greatest Strength Greatest Weakness New Cuts $12.00goodSpeedQuality Masterpiece$15.00goodSpeedQuality Skilled Klipz $10.00goodQualitySpeed 4

6. Marketing Mix  Price: Its affordable, brings competition, and makes profit. Its affordable, brings competition, and makes profit.  Place: Convenient location, many customers Convenient location, many customers  Product: Makes people look presentable, and clean for any occasion. Makes people look presentable, and clean for any occasion.  Promotion: We will use grand opening sign and word of mouth We will use grand opening sign and word of mouth 5

7. Marketing Plan PhaseMethodDescriptionCost Awareness Grand opening banner and word of mouth. In front of business one month before opening. $58.00 Purchase Good quality. Good quality to satisfy customers. $ 0 Retention Good service. Good service would keep the customers loyal. $ 0 6

8. Cost of Materials/Direct Labor Definition of One Unit 1 Haircut Cost of Sales Per Unit Direct Labor (Labor Cost per Hour) Time (in hours) to make 1 unit Direct Labor Cost Per Unit $ 7.65 30 min. or.5 $ 2.52 Total Direct Labor Per Unit $ 2.52 Material Description Cost/Total Quantity Cost Per Unit ($) razors $2.50/ 10.25.25 gel $1.50/ jar $1.50/ jar.10 Total Material Cost Per Unit $.35 Variable Costs Per Unit $ 0 Cost of Sales Per Unit $ 2.87 8

9. Economics of 1 Unit Definition of One Unit Haircut Selling Price per Unit $ 10.00 $ 10.00 Direct Labor Per Unit $ 2.52 $ 2.52 Materials Per Unit $.35 $.35 Total COGS Per Unit $ 2.87 $ 2.87 Variable Costs Per Unit (outgoing shipping, packaging, commissions) $ 0 Total Cost of Sales $ 2.87 $ 2.87 Gross Profit Per Unit $ 7.13 9

10. Time Management Plan Business Schedule for a Typical Week Entrepreneurship42 School Hours 37 Work Hours (ex.part time job) 0 Sleep43 Free-Time Hours 46 10 Business Schedule for a Typical Week Entrepreneurship42 School Hours 37 Work Hours (ex.part time job) 0 Sleep45 Free-Time Hours 44

11. Average Monthly Fixed Costs Type of Fixed Cost Monthly Cost Entrepreneurial Stipend [ hours x (minimum wage + $1] $20.00 Utilities$75.00 salaries of employees $300.00 insurance$25.00 rent$730.00 depreciation$4.44 Total Monthly Fixed Costs $1154.44 11

12. Monthly Sales Projections Month Units Sold January500 February376 March416 April460 May530 June552 July560 August572 September544 October540 November500 December572 Total =6122 Monthly Break- Even Units Monthly Fixed Costs/Gross Profit Per Unit 163 hair cuts 13

13. Selling Price Per Unit $ 10.00 # of Units Sold 6122 6122 Total Sales $61,220.00 Total COGS Total COGS$21,014.14 Other Variable Costs Other Variable Costs $ 0 Total Variable Costs $21,014.14 Gross Profit $40,205.86 USAIIRD USAIIRD$13,853.28 Other Costs/Unforeseen Other Costs/Unforeseen $ 7,000 Total Fixed Costs $19,973.28 Profit before Taxes $20,232.58 Less Estimated Taxes @25% $ 5,058.15 Net Profit $ 15,174.43 Projected Yearly Income Statement 14

14. Start-up Investment Entrepreneurial hours needed for start-up Wage I pay myself Total start-up time investment 17hrs$7.65$130.05 Item Where I will buy this? Cost of Item Startup cost for barbershop Sally beauty supplies $2200.00 CASH RESERVE covering 3 months of fixed costs $3493.32 Business Cards & Sign $250.00 Estimated TOTAL START-UP INVESTMENT $6073.37 15

15. Return On Investment Return on Investment (ROI) 250% For every $1 dollar invested, my business earned : $2.50 16

16. Social Responsibility Plan  Donate 100% of our sales to the American Cancer Society for one day. ($600.00 or more)  Huge banner in the entrance a month in advance and spread it through word of mouth. Ask other barbers to join for a good cause just for a day. 17

17. Business & Educational Goals  Business -Double our customers by the end of the first year. - Open other locations around the state. Educational - We both plan to graduate high school with honors, and proceed to a 4 year university. - In the next about 4 years we plan to be ending college and starting on our path to a new life with good jobs. 18

18. “Got Clips? …Skilled Klipz” Thank you for your consideration of… Skilled Klipz 19