Strategic Position and Risk Assessment
Shear Essence Salon will be a luxurious beauty salon located in downtown Jacksonville, Oregon. Shear Essence’s objective is to provide our customers with quality hair care in a stylish atmosphere that is not only relaxing but also provides our customers with convenience and great customer service. Shear Essence will be offering “One” complimentary drink of the client’s choice from a list of local fine wines, beers, Pepsi products, water, coffee or tea during their appointment.
Shear Essence Salon is unique due to the fact that there will be alcohol served to our clients that are over the age of twenty-one. With alcohol being served, the salon will be advertising more towards the 21 and older age group but will cater to all ages of clientele. Children will not be turned down and advertisements for Shear Essence will be geared towards a family oriented place of business. Jacksonville is estimated to have a population of 4,060 with 62% of adults married and 37% of them over the age of 21 and a median age of 54. Furthermore, with four well established stylist that have built up a clientele, it will help us to build up our target market to the surrounding area of Medford, Ashland and the rest of Jackson County.
The salon will be in a landmark building that keeps up with the historic look and traditional feel of this touristy town. Due to the financial downturn of the industrial real-estate market, Shear Essence would be able to purchase a building in the area desired for an incredibly reasonable price of $625,000, with an estimated mortgage payment of $2,245/mo., according to Remax’s web page. The last vacant building in the beautiful Nunan Square Dev. is located at 690 G Street. One of five buildings in the commercial development of the Nunan Square. Potential for professional office or retail. Demised into 4 tenant spaces, 2 per floor, (each floor approx. 2000/SF). Owner will carry with acceptable offer according to the Remax commercial real estate site (Estate, 2001-2014). The salon will be on the bottom floor and will take the entire 2000/sf and the upstairs will be split into two office spaces and rented out for $800.00 per month lowering our mortgage payment to $645.00 per month. There is plenty of parking space and located close to down town Jacksonville for convenience and easy access.
The ideal tenant for our upstairs area would be a daycare which would provide our clientele with a service of having their children watched while they are getting a haircut. It would be in our lease agreement to give our customers a discount on day care services at that time that they have an appointment but only during their appointment. This will further provide them with the relaxation that Shear Essence strives to provide them.
Therefore, if the upstairs was leased to one tenant that provides a service to us and our clients then the rent for the...