Shag Salon | Application Preview
Shag Salon is applying for government grant funding primarily to enhance its facilities and seek expert guidance to transition to a more robust business model. The grant will be used for crucial upgrades, including adding storage cabinets in the shampoo area, replacing front windows and doors, installing awnings for better temperature control, and securing the parking lot gate for client safety. To gain insights on restructuring the salon to promote an employee team-based environment, Shag Salon intends to consult with the Babes in Biz program.
Over the next five years, the salon plans to expand, either by acquiring adjoining space or opening a new location. The new model would involve transitioning current independent contractors into salaried management roles, fostering a cohesive company culture while also providing employee benefits and training opportunities for new, less experienced stylists in an inclusive setting.
Shag Salon argues for funding approval by emphasizing its commitment to improving the local beauty industry and creating a supportive environment for stylists and clients. The salon aims to foster collaboration over competition, which is increasingly important in the current market.
In terms of competition, Shag Salon identifies three main rivals: Lifetime, Strands, and Honey Salon. With Lifetime’s impending opening of a remodeled salon nearby, Shag Salon focuses on retaining its client base through its unique, nurturing culture and commitment to environmental consciousness. The salon differentiates itself through its all-women team, dedication to community support, and a mission to challenge stereotypes within the beauty industry.
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General Information
Business Registration Number: 626442421
Location: Sacramento, CA, United States
Length of Operation: 1-5
Number of Employees: 1-10 Employees
Annual Gross Income: $100k to $250k
Annual Gross Expense: $100k to $250k
Open to Loans: NO
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Funding Usage
My plan for the funding received would be to upgrade our current space as well as seek expert advice on how we can successfully change our current business model. Upgrading our space includes installing cabinets in the shampoo area as well as the back room for additional storage as it would be the best way to utilize what we can in our small space. We also need to replace the front windows, the front door and add more awnings as those will also help to regulate the heat and air during the extreme temperatures of Sacramento while decreasing our energy usage. Lastly, replacing the current parking lot gate will increase security in our parking area for our clients and stylists. The expert advice the salon will apply for will be the babes in biz, which go over our current business plan, all the current profit margins and business expenses, and how to restructure your salon to be an employee team based salon as opposed to rental or commission
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Business Plan
In the next 5 years, we plan to grow our business by either expanding into the space next door, or by adding an additional location. We plan to create a new business model, taking our existing independent contractors and make them our management employees so we can provide a more unified working culture, PTO, benefits, retirement and more opportunity to grow. The salon would take on new employees with less experience, to be trained by our seasoned stylists in an inclusive and secure environment. My business would be worth investing in because I have big dreams to make Sacramento and my small business the best it can be. We will do this by providing a better working environment to artists in the beauty industry that will give to and connect our community. We need benefits, education and a positive culture. We need more inclusive salons that work as a team instead of competing against each other.
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Self Identified Competition
Our top 3 competitors are Lifetime (formally Arden Hills), Strands and Honey Salon. Most of our stylists and clients came from the salon that was located inside of Arden Hills (Salon Cabochon). When we had started at Cabochon, the concept was team based, similar to what we wish to recreate. That salon was bought out by Arden Hills, who took away our benefits and culture. Most of our clientele were members there. Now that Lifetime has bought out Arden Hills they are currently remodeling and building a new salon, and will soon be our biggest competitor. Lifetime is a large chain that has much more funding and resources to entice our clientele. We are hoping to retain as many clients as possible, but will most likely lose some when Lifetime’s salon is finished. Strands and Honey salon are the two salons located closest to ours. Though we carry different products and vibes, they are only just a few steps away and another option for walk in potentials. What makes Shag Salon different than our competitors is our culture and the environment we create. We want every stylist to thrive, and every client to feel welcome. We are an all women small business, who support each other, and go the extra mile for our clientele. We invest in brands that are environmentally conscious. We support our fellow small businesses and artists. We have the dream of removing the stereotypes surrounding the beauty industry, by enriching the lives of our clients, our stylists and our community.
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Contact Applicant
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