Growth has been stagnate, we've seen growth in some areas, but it has been slow
Xie Wen Hong feels that his has been over a year and it is different than expected, usually the business will become profitable after a year
We've ran through some difficulties last year, and those changes have been positive, but it delayed the process of profitability, we are consistently working towards his business, our interests are aligned with his, we are currently working on another option but it takes time
he said ok
When we met at the beginning of the year, we've started to implement changes
1) hard for stylists to deliver our new process
2) they've adapted to the changes, and we've seen some progress, but its been slow
We will now working towards a new process, we are partnering with Loreal, a highly reputable company, they have a department within their business that work towards developing and working with us
We feel the tools and resources they will bring will help us achieve the goal of profitability
We will not cancel with Fantastic Sams, but the situation is very unique, we are bringing in a new partnership and they focus on stylist retention, we are exploring it, we have a meeting with them on Thursday and we can share how it's gonna work this is an addition to our program, its a relationship we are gonna add, so not replacing
We emphasized we have not cancelled any relationships, we are additing Loreal to our partnership and that this will help the investment
He came up with an idea from China that we contract a third party and they guarantee profit, is that something FranVest can do?
This is a small company, will the employees be confused on what to do? Will that complicate the process?
Loreal is a large company, when we partner with that company, we have a lot of manpower and resources we can pull from, what is different abut it is that their primary goal is to sell product, they have given us access to a extremely successful, very high level coaching company that we are meeting next week, so loreals goal with us is that they want us to be successful and in exchange we will run our products through them, so the more success we bring, the more products they sell, its a mutual benefit
So this company has an established network of many levels of ppl in the field for where his salons are
We have professionals who are very successful within the salon business
Is that gonna increase my cost?
No, it should not increase that much, because their goal aligns with ours, they are willing to help us
We dont have all the details yet, but they understand the situation and that the stores dont have a lot of capital to work with, so they are aware of that
As long as you remain being cautious
Our challenge is that the salary we give the stylists is minimum wage, we are paying for entrey level workers, but we are expecting high level work and experience, so thats been a struggle with the business
Loreal will help us change the career path areengement in addition to educating them, doing a whole new education series which increases their business, marketing, sales and hair cutting skills
so better customer service and better career path for them in the future
Yes, customer services, up selling, so revenue of the store increases. They have a coaching team will go to the locations to learn and practice the skills so they get better
The company gave us information on how theyve been able to turn stores around and how successful they've been
He thinks what he wants to see, without any increase of the cost, you can just implement any future staff that will increase the cost.
We will do the best we can and we will continue to let him know, we are very grateful this is a positive change to his project
He has an idea that its a possible we can ask management company to do it this way, but my main concern is to make profit
The skills are not enough so his idea is to get an experienced person in the industry and will contract the store out, and this person will promise profit, and we can just get profit from him, this is just an idea, so maybe the management can handle it this way
We will have more information
The reason why i chose to invest is because its a more stable country, there are a lot of good management companies here and because of David Ho
We've had many meetings to enhance his salon and we are aligned, the reason he chose us is valid, we thank him for trusting us and we are going above and beyond to help his investment
Maria asked for funds to cover payroll, we had another call and had to step out of the call. We then communicated via email