EXECUTIVE OVERVIEW
Bella Unique Beauty Academy is an exemplary cosmetology school that is dedicated to consistently providing our clients with excellent service, quality products, and furnishing an enjoyable atmosphere at an acceptable price/value relationship. We plan to maintain a friendly, fair, and creative study environment, which respects diversity, ideas, and hard work.
COMPANY DESCRIPTION
Bella Unique Beauty Academy is an exemplary cosmetology school that is dedicated to consistently providing our clients with excellent service, quality products, and furnishing an enjoyable atmosphere at an acceptable price/value relationship. Our Academy will be located at 41 Central Avenue North Union, Chicago. Our Academy will utilize 5,005 square feet. Our location is strategically situated on one of the busiest streets in Chicago, Illinois. It is a high profile area, with easy access from all parts of town.
Leadership
Owner, CEO, Stella Chiaro Polleschi
Founder, Stella Chiaro Polleschi began her life with the odds stacked against her, when she immigrated to this county as an infant. Stella was the middle child out of four sisters. None of the family spoke English and they didn’t even have a place to live when they first arrived in America. She was determined not to let this or anything get in her way, on her path to being a success.
Chief Financial Officer
The chief financial officer of this academy will be Shoreman Michaels Polleschi. Cameron will be in charge of ensuring all financial models are actuated and brought into fiscal materialist. Sales goals and targets for revenue, annuals profits, monthly cash flow, and all matters tied to dollars and cents will be under the watchful eye of Cameron. If Cameron walks into the room, profitability will be under the microscope. In conjunction with what is reported by the market research and data we have compiled (see sections pertaining to market and industrial research), it will be vital for the team to turn to Cameron to offer over site, intelligence, and leadership.
PRODUCT AND SERVICE
The Three-Profit and Service Approach
Bella Unique Beauty Academy will provide instruction for cosmetology for students registered within our programs. We believe to Generate revenues from both tuition, sale of classroom materials and beauty products. We also believe that we will receive a notable number of applicants as individuals try to acquire new opportunities in light of the current economic climate.
Our products and services model is especially prodigious as the demand for individuals seeking cosmetology and aesthetician licenses has increased greatly over the past five years given the current economic climate within the United States. Our service offerings are listed below;
SWOT Analysis
Strength
Our main strength according to the SWOT Analysis is the power of our business structure. Our founding employees have the adequate qualifications and experience in the cosmetology industry; they are the best individuals in the industry. Our business location will also count as a business strength for us. We are situated and located in the center hub of the city. We differentiate ourselves from the rest of the beauty schools because we focus on small class sizes. With micro-matriculations of 20 elite students every phase of the curriculum, students are given world class instruction. At Bella Unique Beauty our strategic value added will be attention to detail and specialized course interaction that caters to the student’s interests.
Weakness
We were meant to understand by our SWOT Analysis that it might take some time for our cosmetology Institute to break into the market and gain acceptance via reputation in the already saturated education cosmetology industry. This is our major weakness at Bella Unique Beauty Academy.
Opportunities
The opportunity in the vast cosmetology industry cannot be over emphasized. Individuals in the makeup and beauty industry are very keen to take over the industry through innovation and new designs. The cosmetology industry will always be needed to provide adequate knowledge to the ever innovative and brilliant beauty and make up industry.
Threats
Some of the threats we will face as a Cosmetology Institute will include unfavorable government policies that might affect the education system, the appearance of a competitor within our location of operations and global economic downturn which usually affects spending / purchasing power. We have made plans to curtail all possible challenges and threats.
Market Anlaysis
Industry Trend
In the United States, there are 1,000 schools that train and teach individuals to become cosmetologists and aestheticians. Every year, the industry aggregate raise approximately $1 billion per year while also providing jobs to more than 20,000 individuals, and the aggregate payrolls have exceeded $150 million.
Opportunites
This cosmetology industry is a very matured industry, and estimated incomes is believed will remain flat over the next twelve to eighteen months as US trade tensions impact the economy.
However, Management also expect strong enrollment because many individuals are searching for new jobs in the brink of the economic uncertainty. All these are especially true because the fact that beauty school services are in demand even with the economic climate. With new trends in social media, looking good and maintaining that image is on the rise, and causing a boom in the beauty industry; and in turn the cosmetology industry.
The demand in Chicago is strong and is on an upward trend. All of the current and future predicted trends indicate “education” based demand. This is extremely good for business as this means anyone wanting to set up a cosmetology course is likely to get a good deal of admissions if they market correctly. The demand is heavily interesting, meaning people don’t really prefer a brand of school over another and neither do they remember any particular brand. This is very good because this leaves space for anyone to open and compete well in this industry.
Marketing Plan
Target Market
We believe that those who will benefit from our service offering are adults- both male and female, as well as young adults who all want to learn about cosmetics. This cut across various sectors of the economy. Our average client at Bella Unique Beauty Academy will be man or woman ages 18-44 living in our targeted market; with unmarried women age 25-34 being our primary demographic for marketing purposes. Common traits among our prospective clients will include:
- Annual household income below $30,000.
- Lives or works no more than 15 miles from the Company’s Beauty School location.
- Will spend $15,000 on learning how to become a cosmetologist or aesthetician.
- Will require licensure to operate as an aesthetician or cosmetologist.
Pricing Model
We all know that educational facilities in the United States of America and in the world charge students per tem / per session and students have the options of either paying their tuition before resumption or during the school session. And we also know that Cosmetology institutions Generally bill their clients based on loads of factors, locations, services offerings and extra – curricular activities.
We at Bella Unique Beauty Academy hope to keep our fees at the mid range of the average market rate for all of our clients by keeping our overhead low and by collecting payment in advance. We will also offer FASFA loans.
Competitive Analysis
We are not unaware of the heavy competition that this industry is plagued with. It therefore needs well thought out plans to be able to do the very best in surpassing our competition. We at Bella Unique Beauty Academy are very ready to set our self apart from other cosmetology schools that may offer only one or two types of services and education.
We believe that what will set us apart from our competitors will be our commitment to providing all of these awesome services in one convenient location.
Sales Strategy
Bella Unique Beauty Academy has made provisions for effective and direct publicity and advertisement of our cosmetology Institute. Outlined below are the platforms we hope to leverage on to promote Bella Unique Beauty Academy:
- Place adverts on both print (community based newspapers and magazines) and electronic media platforms
- Establish relationships with local salons throughout the target market.
- Develop on-going relationships with guidance counselors that will refer their students to the Beauty School on an on-going basis.
- Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + to promote our brand
- Engage in road show from time to time in targeted neighborhoods in and around Washington state
- Distribute our fliers and handbills in target areas in and around Washington state
- Passing vital information via our school’s social media handles like twitter, Facebook, Google hangouts etc.
- Ensure that all our teaching and non – teaching staff members wear our branded shirts and all our vehicles are well branded with our schools’ logo.
Forecast
We at Bella Unique Beauty Academy expect our business income to rise steadily over the next 10 years, as the reputation of the academy, our instructors, and our services. We believe that by then our services must have become apparent to the General public.
Accurately outlined below is the sales projection for Bella Unique Beauty Academy, which is based on the location of our Academy and of course the wide range of services that we will be offering;
- First Fiscal Year-: $3,222,000
- Second Fiscal Year-: $5,555,000
- Third Fiscal Year-: $7,200,000
Financial Analysis
After testing the initial product with early adopters, the first three classes will be optimized via customer feedback. After this initial launch, the final regimen of coursework will be brought to market prospects specific to the target areas with individualized advertisement and promotions. If it turns out that one particular discipline in cosmetology is of the highest interest, attention will be put their to offer the best resources to our students.
Based on the Size of the market and the defined market areas, the sales projections show that the breakeven point will be reached within year two. The annual profits for year three, four, and five are projected to grow linearly. See the attached financial spreadsheet for a comprehensive breakdown of our cash flow analysis and financial forecast.