City gent gets transformed
Published
30th Apr 2007
by Admin
HJ's salon doctor helps a men's salon to pull its business model into shape
Steve Beever set up City Gent in 1991 and now has five salons with a turnover of £1million. He felt there was a fantastic opportunity to do something different in the industry and wanted to expand - his ambition was to open nine new company salons by 2009.
But to achieve this, energy and skills had to be channelled in the right direction. He needed help in identifying this direction, realising that his salon's business model needed to be tweaked and developed.The Diagnosis:
I started by conducting a SWOT (strength, weakness, opportunities, threats) analysis with Steve on the business. Strength: The company had good brand design - a strong, specialist male fashion store concept. Weakness:- Poor on PR
- Had a shortage of stylists
- Increasing competition in the market
- A high rental cost for a new salon
- A lack of good locations for new branches
- Expensive operating costs
- Poor retailing percentage to turnover
- No precise data on its business clients.
- retailing to at least 20%
- Could launch own-brand products
- Revamp the price list
- Become active on PR
- Develop and design operational systems so that the business became system-dependent and not people-dependent.
- To get more business
- To do more and more work of a higher quality
- To work together.
The Result:
All of the recommendations and suggestions have been accepted and are being implemented. Steve was introduced to a PR company that specialises in the industry and an employment law specialist to sort out terms and conditions of employment including training agreements, and fair restraint of trade clauses with a reasonably defined radius-clause agreement. A wider, more spacious retail area has been developed to give the salons a refined male-boutique feel, and will develop the percentage of retail to turnover. Three new store locations in Newcastle, Liverpool and Birmingham have been identified, with the help of a commercial property agent. A new position of area manager has been created, to help underpin and improve communication and operational back-up between head office and the salons. All the team leaders have received an action plan with assignments to complete. Product companies have been encouraged to become involved in training and support. 2007 is looking exciting for Steve and his team. The company is poised to expand and develop.