Owners Meeting

Feedback and Management Requests from Xie Wen Hong.

Mrs. Xie wenhong has discussed the financial performance of her salons with me, she asked me to help her check the P/L, I explained most found from the P/L, and discussed some key issues with her.

Mrs Xie need you provide a turn round plan for her salons asap, so she can discuss with you for the capital injection plan, she also concerns below issues:

1. You need control the level of inventory, the current inventory level is too high.
2. Please provide the cost reduction plan for both salons, the target is to reduce at least 20% cost, which will help both salons reach break even.
3. Please provide the cash flow projection for next 6 months,

Mrs Xie wants to have another conference call with you, please lets us know you schedule.

Comments (3)

  1. Sabrina Wall :

    Talked to Xie Wen Hong’s son. She was with them. She is going to the stores from Santa Barbara to San Deigo and wanted to arrange the date and time with us. We are trying to get a call with her husband to go over the findings report. We requested a meeting tomorrow morning at 9 am EST.

    Talked the the General Manager to discuss schedules for a trip out for Xie Wen Hong.

  2. Sabrina Wall :

    Had owners meeting today to explain the findings report and additional capital request to Xie Wen Hong and her husband. Maria explained that the need for the additional capital is to help us have 3 months to get the ticket averages up. The ticket average is the one big challenge with the locations. The rest of the factors are working effectively. We will still improve in all areas to optimize production. Maria feels that the stores are not bad. They are in a good position. We simply need more time.

    He can’t afford more than 50k. He wants to know what are plans are to make sure we are effective with the $50k to get the stores to be self sustaining.

    He requested meeting minutes and clear monthly targets.
    He will transfer funds to the business monthly to help with his cashflow and see how things are going.
    He wants Maria to explain what the other options for funding are. Maria to provide.
    He wants to know what the options for repayment of 50k. He requested additional profit percentage. Maria said she would look at and provide options.

    His confidence is lower now because we are not working from the original plan.
    He wants us to learn the lessons from the past job and do a better job going forward.

    David will send the additional email address. They did not get the findings report to review. It went to Xie Wen Hong not her husband, but she is traveling to visit the salon and her son in Santa Barbara so she did not send it to her husband.

  3. Sabrina Wall :

    Xie Wen Hong and her son Peter came to the salons for a visit. They were concerned with the visibility of the Vista sign. They asked about improved that. We have a truck banner which will go out next week. We are just awaiting the new pricing for the sign. Peter got a cut at one of the locations. They liked the cut.

    They stated there was an older crowd at North Oceanside. They wanted to know how to get a younger crowd in. Lisa the manager explained that the younger crowd comes in at night and on the weekends.

    Lisa explained the new marketing strategy of events. They asked if we can do marketing at schools. They asked about special occasion marketing. We said yes that is part of the new strategy. She went over the new philosophy and marketing strategy. She said the salons are very close to being where they need to be. She said she needs 60-90 days to get the salon to the next level.

    They wanted to see both locations. It worked out really well. She explained to them that her focus is with them. She is in constant contact with the team at the stores.

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