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Table of Contents 1.0 Executive Summary............................................... 1 Chart: Highlights................................................ 1 1.1 Objectives.....................................................1 1.2 Mission........................................................2 1.3 Keys to Success................................................2 2.0 Company Summary................................................. 2 2.1 Company Ownership..............................................3 2.2 Company History................................................3 Table: Past Performance.......................................... 3 Chart: Past Performance.......................................... 4 3.0 Products and Services...........................................4 4.0 Market Analysis Summary.........................................4 4.1 Market Segmentation............................................5 Table: Market Analysis........................................... 6 Chart: Market Analysis (Pie)..................................... 7 4.2 Target Market Segment Strategy.................................7 4.3 Service Business Analysis......................................7 4.3.1 Competition and Buying Patterns............................8 5.0 Web Plan Summary................................................ 8 5.1 Website Marketing Strategy....................................10 5.2 Development Requirements......................................10 6.0 Strategy and Implementation Summary............................10 6.1 SWOT Analysis.................................................10 6.1.1 Strengths................................................. 10 6.1.2 Weaknesses................................................ 10 6.1.3 Opportunities............................................. 10 6.1.4 Threats................................................... 11 Page

Beuty Salon New

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Page 1: Beuty Salon New

Table of Contents

1.0 Executive Summary...............................................................................................................................1

Chart: Highlights.................................................................................................................................1

1.1 Objectives..........................................................................................................................................1

1.2 Mission..............................................................................................................................................2

1.3 Keys to Success.................................................................................................................................2

2.0 Company Summary...............................................................................................................................2

2.1 Company Ownership.........................................................................................................................3

2.2 Company History...............................................................................................................................3

Table: Past Performance......................................................................................................................3

Chart: Past Performance......................................................................................................................4

3.0 Products and Services............................................................................................................................4

4.0 Market Analysis Summary....................................................................................................................4

4.1 Market Segmentation.........................................................................................................................5

Table: Market Analysis........................................................................................................................6

Chart: Market Analysis (Pie)...............................................................................................................7

4.2 Target Market Segment Strategy.......................................................................................................7

4.3 Service Business Analysis.................................................................................................................7

4.3.1 Competition and Buying Patterns...............................................................................................8

5.0 Web Plan Summary...............................................................................................................................8

5.1 Website Marketing Strategy............................................................................................................10

5.2 Development Requirements.............................................................................................................10

6.0 Strategy and Implementation Summary..............................................................................................10

6.1 SWOT Analysis...............................................................................................................................10

6.1.1 Strengths...................................................................................................................................10

6.1.2 Weaknesses...............................................................................................................................10

6.1.3 Opportunities............................................................................................................................10

6.1.4 Threats......................................................................................................................................11

6.2 Competitive Edge............................................................................................................................11

6.3 Marketing Strategy..........................................................................................................................11

6.4 Sales Strategy...................................................................................................................................11

6.4.1 Sales Forecast...........................................................................................................................11

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Table: Sales Forecast.....................................................................................................................11

Chart: Sales Monthly.....................................................................................................................12

Chart: Sales by Year......................................................................................................................12

6.5 Milestones........................................................................................................................................13

Table: Milestones...............................................................................................................................13

Chart: Milestones...............................................................................................................................13

7.0 Management Summary........................................................................................................................13

7.1 Personnel Plan.................................................................................................................................14

Table: Personnel................................................................................................................................14

8.0 Financial Plan......................................................................................................................................14

8.1 Important Assumptions....................................................................................................................14

8.2 Break-even Analysis........................................................................................................................14

Table: Break-even Analysis...............................................................................................................14

Chart: Break-even Analysis...............................................................................................................15

8.3 Projected Profit and Loss.................................................................................................................15

Table: Profit and Loss........................................................................................................................15

Chart: Profit Monthly........................................................................................................................16

Chart: Profit Yearly...........................................................................................................................17

Chart: Gross Margin Monthly...........................................................................................................17

Chart: Gross Margin Yearly..............................................................................................................18

8.4 Projected Cash Flow........................................................................................................................18

Table: Cash Flow...............................................................................................................................18

Chart: Cash........................................................................................................................................19

8.5 Projected Balance Sheet..................................................................................................................19

Table: Balance Sheet.........................................................................................................................19

8.6 Business Ratios................................................................................................................................20

Table: Ratios......................................................................................................................................20

Table: Sales Forecast...................................................................................................................................1

Table: Personnel..........................................................................................................................................2

Table: Profit and Loss..................................................................................................................................3

Table: Cash Flow.........................................................................................................................................4

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Table: Balance Sheet...................................................................................................................................6

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1.0 Executive Summary

Chart: Highlights

Sales

Gross Margin

Net Profit

$0

($10,000)

($20,000)

($30,000)

($40,000)

($50,000)

FY 2012 FY 2013 FY 2014

Highlights

1.1 Objectives

To develop a working website that will allow customer to book an appointment and at the same time allow administrator to manage booking or reservations.

To reduce appointments overbooking that cause overcrowding by organizing the appointments and keeping the track of available chairs to book.

To keep clients past visits and store preferences to make their appointment scheduling simple and streamlined experience.

An interactive system that will allow the exchanging of information between the barber and the client to discover customer's satisfaction.

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1.2 Mission

Our mission is to reduce the waiting time of the customers by developing an online appointment website, and improve customer satisfaction by providing skilled services through talented cosmetologists, that give our customers the dignity and self-respect needed to be successful in the world today.

We are also committed to offering a range of complementary services for hair styling and body care in the same location, to give our customers the convenience of a single location for all their hair and body care needs.

1.3 Keys to Success

Location - by using the website for booking appointment, it therefor reduces the geographical boundaries and provides easy access for clients as well as greater visibility to potential clients.

Advertising - it will play a better roll by using the website to send our name, message, mission, and our concept out to the public.

Unique - not like others in providing quality hair care and addressing more complicated hair care issues in private consultation.

Convenience - offering clients a wide range of services in one setting, and extended business hours.

Customer Satisfaction - this is the most important factor in whether a one-time customer becomes a repeat or permanent customer and also recommends friends to us.

Environment - providing an environment conducive to giving relaxing and professional service.

2.0 Company Summary

The beauty salon will provide a wide range of hair care services, products, wigs, and hairpieces. it will only offer top quality hair and skin services and beauty products. What will make it different from any competition is its commitment to continued education, providing the latest technology, hair care and replacement techniques, along with other related services.

2.1 Company Ownership

 

2.2 Company History

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3.0 Products and Services

The salon is considered as a full-service beauty salon that will offer a wide range of services that include:

Hair: The owners will provide all of the hair replacement services and some of the facials. Hairreplacement services offered include Great Lengths and Le Metric, as well as more traditional methods, including wigs and smaller hairpieces. Other hair services include haircuts, relaxers, perms, colors, shampoo, conditioning, and curling, reconstructing, weaving and waving. MassagesIn addition, the facility contains a separate room which will be used for massages, aromatherapy, and craniofacial therapy.

Nails: manicures, pedicures, polish, sculptured nails.

Skin Care: European facials, body waxing, massage.

4.0 Market Analysis Summary

Hair care market.

Women will not compromise on appearance. Women will continue to visit hair salons as often as they did pre-credit crunch (Source: TNSWorld panel – Salon Survey, 6 months to March), confirming the notion that women will not compromise their appearance despite facing greater financial pressure. In fact in 2009, the 25-34 age group saw a 10 percent increase in the number of women paying to have their hair done in salons and a 43 percent increase in the number of women who wanted color or a perm (Source: TNS World panel – Salon Survey, 6 months to March 2009).

The hair salon industry earns more than $1 billion/year in the United States alone. Millions of hair-loss sufferers are reduced to trying quack remedies they see on TV because there are no professional hair replacement services in their area. When presented with real treatments that work, many clients are amazed, having given up on really receiving help.

The salon is committed to helping client of both genders and from any town area reclaims their looks, their self-respect, and their dignity by providing professional services that will meet their needs. 

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Salon and Beauty Spa Market

In 2001, according to the U.S. Census, beauty salons reached revenue of $20.8 billion within the United States.A typical full-service hair and salon business offers most of the following services:· Hair: haircuts, trims and styling; highlights/foils & weaving; hair & scalp treatments; relaxers, perms; colors; shampoo and conditioning; curling, reconstructing, permanent waving.· Nails: manicures, pedicures, polish, sculptured nails, nail repair, hand conditioning treatments.· Skin Care: Facials, body waxing, massage.· Sale of professional hair/beauty products: Many salon businesses also offer a wide range of hair and beauty products in order to provide everything a customer needs in one convenient location.Sale of professional hair/beauty products: Many salon businesses also offer a wide range of hair and beauty products in order to provide everything a customer needs in one convenient location

4.1 Market Segmentation

According to the U.S. Census, in 2000, any town had an overall population of 360,890. Of these, the majority is Caucasian (80%), and roughly half were married couples, with or without children. 60% of any town population owned their own house, and the median household income was $45,081. The local economy is based heavily on tourism, although it has recently gained a strong foothold in the electronics, high-technology, and manufacturing industries. Any town has seen a strong population growth over the last 25 years.

therefore the salon will target customers with an average to above-average income level ($50,000 to $150,000 household incomes), seeking hair replacement and hair, skin, and body care services. Although the clients need different services, their underlying needs are much the same: to be treated with respect and dignity; to feel good about their appearance; and to be pampered now and then.

 

Hair   replacement clients about 50% of the general population will suffer some hair loss by the age of 50; many expect and tolerate this. However, for some people, especially women, hair loss is a dramatic and traumatic event. When hair loss accompanies a major illness, such as cancer, it is even more devastating. The numbers in the following table reflect potential hair replacement clients.

Cancer patients:  We will advertise our presence more visibly to doctors, therapists, and patients at these centers, to let them know how we can help patients maintain a sense of normalcy during the stress of cancer treatment.

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Female hair loss:  Over 25 million American women suffer the effects of female hair loss, and many have no idea what causes it or how to treat it. By integrating hair replacement services into the context of a traditional "salon," we hope to turn what could be a stigmatizing experience into just another day at the beauty parlor.

Male pattern baldness:  Once considered just a fact of life, male pattern baldness is now being viewed as a treatable disease. Men are also paying more attention to their personal grooming, and professional men are willing to pay higher prices for the luxury of a salon atmosphere and the reassurance of using professionally-trained cosmetologists. We will market to this target segment with the promise of a better, more attractive appearance.

Salon clients (hair styling, skin care, and body work)Going to the beauty salon has been a female tradition for the last 100 years, whether for a haircut, styling before a big event, or a simple indulgence. The growing interest in professional hair and skin care among men is said to be expanding client base greatly.

Table: Market Analysis

Market Analysis2011 2012 2013 2014 2015

Potential Customers Growth CAGRHair 30% 2,000 2,600 3,380 4,394 5,712 30.00%Nail 25% 1,800 2,250 2,813 3,516 4,395 25.00%Skin care 25% 1,800 2,250 2,813 3,516 4,395 25.00%Sale of professional hair/beauty products

20% 1,600 1,920 2,304 2,765 3,318 20.00%

Total 25.43% 7,200 9,020 11,310 14,191 17,820 25.43%

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Chart: Market Analysis (Pie)

Hair

Nail

Skin care

Sale of professional hair/beauty products

Market Analysis (Pie)

4.2 Target Market Segment Strategy

the salon target market segments are fairly broad, in part because the services appeal to such a wide range of people. the salon focuses on a slightly upscale target market, who can afford the salon services on a regular basis and not just as an occasional treat, because satisfied repeat customers are the backbone of the salon industry.

For the hair replacement services, the salon is targeting three different groups: cancer patients, women with hair loss, and men with male-pattern baldness. Although it has been listed together in the market analysis table, the salon will use slightly different marketing tactics with each group. Many of these customers will come to the salon only a few times, especially if their hair loss is temporary (post-natal hair loss and cancer patients, especially). Others will remain loyal customers for years, coming in for repeat treatments or new wigs. In both cases, our marketing efforts need to establish our reputation as legitimate, skilled professionals who can solve their hair loss problems

4.3 Service Business Analysis

The beauty spa and salon industry is decentralized, and contains numerous small businesses and franchises. As a more upscale salon, and especially as one with a significant focus on male beauty needs, the salon does not fit the "chain" model. Similar businesses gain initial clientele through print and media advertising, but maintain and expand their clientele by consistently satisfying their customers, generating not only repeat business, but word of mouth referrals. Many people will switch salons if a friend or relative is getting consistently good haircuts and expressing satisfaction with the services of a particular salon.

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Most similar salons are owner operated, with additional hairstyling or station employees, or with independently contracted stylists who work on commission.

The hair replacement industry is split between large, international chains offering drugs, dyes, and other products, and smaller local businesses specializing in customized treatment, including surgery.

4.3.1 Competition and Buying Patterns

Hair replacementin any town there is really serious competition for hair salon and hair treatment. There are many salons that offer different forms of extensions and years of experience available at. there for the salon is ready to face the challenge.

 

Beauty Salonthe salon commonly hear complaints from different people that there are few salons that take care of the whole person with the services, it therefore want to meet the people's need. Clients have also expressed the wish for a salon that is not only professional looking, but also has the skill to back up the salon.

Potential clients seeking a good salon experience are looking for good quality, professional, clean and luxurious atmosphere, and skilled staff. Among the salon target market, they are quite willing to pay more for such elements. In fact, the price premium gives the salon's service the feeling of being an affordable luxury, like gourmet coffee, which enhances our customers' identities as upscale, trendy people.

The most important factor, hands down, for the success of a salon is satisfied customers. Word of mouth is the biggest way of building clientele and the salon is weanling to provide.

5.0 Web Plan Summary

 

The proposed online booking system will allow administrator to manage booking or reservations and at the same time providing access to customer for them to be able to book appointment online. User login is required, so new users will need to sign up and register for them to be able to access the relevant information.With the online booking system, the system will allow user to book an online appointment and the user can select their favorite from the available hair dressers and also choose the best time slots that is ok for him. User can also enter his own date and time if the available time slot does not satisfy him. The system will be a better way of storing or keeping previous customer's record.

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The system will comprise two type of log in.

1.   The first part will be the administrative log in

In this section, user needs to be registered and enrolled as administrator. Once enrolled as system administrator, the user will be provided with a user-name and password where he can log in to the personal administration center, When the user logged in he will be able to set the salon opening hours so that customer will not be able to book an appointment outside the opening hours. The system admin can remove appointment slots that are occupied from the available slot to prevent double allocation.

2.   The second part will be the customers' log in.

Briefly, when customer login to the online booking center, an online booking form will appear showing them all available appointment and time slots. They can simply click on the time that suits them they will be taken to a form page where they can enter the relevant data about the appointment details. After submitting the form, the information will be sent directly to the system administration and store in the database.  The system admin can then send a confirmation note to confirm the appointment and finalize any other requirements

The user logged in through the administrative login will be able to perform the following task:•      Add or remove customers booking.

•      Group rooms into sections where there are a large number of rooms

•      Add or remove registered customer that have access to the system

•      Add additional system Administrators

•      Manage emails that are or will be sent to the users that book appointment

•      Activate and complete appointments schedule

•      Reject appointments

•      Delete passed or unattended booking.

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The user logged in through the customers' login will have access to the following task:•      Book appointment online

•      Contact the Administrator directly by email

•      Change booking date or time

•      Delete their personal booking

•      Review your personal previous bookings.

5.1 Website Marketing Strategy

 

5.2 Development Requirements

6.0 Strategy and Implementation Summary

6.1 SWOT Analysis

This is an intended business planning tool and techniques, used in the initial analysis of certain key areas of a business environment in other to identify certain factors in regards to the intended business, such as the strength, weakness, opportunities and threats found in the given business scenario. The word SWOT is an acronym for the above listed key areas, with the strength and weakness being regarded as internal factors, while the opportunities and threats are the external factors.

6.1.1 Strengths

1. New technological innovation

2. Quality customer service procedure

3. Customer service satisfaction

4. Customer Loyalty

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5. Improves management and employee schedules.

6.1.2 Weaknesses

1. Side-lining main business aim

2. Customers unwilling to adapt to the new technology.

3. Cost and maintenance of system implementation.

4. Cost and time spent on Training staff.  

6.1.3 Opportunities

1. Satisfies customer unique experience.2. Wider range of service distribution and generating revenue.

3. Opening up to a global market scale.

4. Technological advances over rival.

5. Improves customer retention.

6.1.4 Threats

1. Denial of service by rivals and hackers.

2. A whole new phase of competition from rivals.

3. Facing threat and risks of e-commerce.

6.2 Competitive Edge

6.3 Marketing Strategy

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6.4 Sales Strategy

The primary focus on the next step forward is to incorporate the existing services into a full-scale salon concept, so that online booking is seen as just one more hair service option. The salon will leverage its skills and reputation and its highly visible new technology to increase its client base with more extensive marketing campaigns on the benefits of making online appointment and other hair services.

The salon will continue to provide great service, and will track its sales and marketing goals as it go further. The salon will work with its independent stylists to ensure a consistent level of quality and customer service. more also the salon will train them in some of the cosmetic forms of hair replacement treatment, such as extensions, so as to incorporate some of that business into the "salon" portion of the business.

6.4.1 Sales Forecast

Table: Sales Forecast

Sales ForecastFY 2012 FY 2013 FY 2014

SalesHair $532 $600 $700Nail $432 $550 $6,50skin care $474 $540 $640Sale of professional hair/beauty products $485 $530 $640Total Sales $1,923 $2,220 $1,980

Direct Cost of Sales FY 2012 FY 2013 FY 2014Hair $759 $1,000 $1,500Nail $526 $800 $1,300Skin care $514 $750 $1,200Sale of professional hair/beauty products $655 $840 $1,350Subtotal Direct Cost of Sales $2,454 $3,390 $5,350

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Chart: Sales Monthly

Hair

Nail

skin care

Sale of professional hair/beauty products

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

$220

Ap

rMa

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pO

ctN

ov

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r

Sales Monthly

Chart: Sales by Year

Hair

Nail

skin care

Sale of professional hair/beauty products

$0

$300

$600

$900

$1,200

$1,500

$1,800

$2,100

$2,400

$2,700

FY 2012 FY 2013 FY 2014

Sales by Year

6.5 Milestones

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Table: Milestones

Milestones

Milestone Start Date End Date Budget Manager DepartmentHair 4/11/2011 5/11/2012 $30,000 Thiery Hair

DepartmentNails 4/11/2011 5/11/2012 $25,000 Ola Nails

DepartmentSkin Care 4/11/2011 5/11/2012 $25,000 Oku Skin Care

DepartmentSale of professional hair/beauty products

4/11/2011 5/11/2012 $20,000 Abdulrahman Sale of professional hair/beauty

products Department

5/11/2011 $0 ABC Department

Totals $100,000

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Chart: Milestones

19001901190219031904190519061907190819091910191119121913191419151916191719181919192019211922192319241925192619271928192919301931193219331934193519361937193819391940194119421943194419451946194719481949195019511952195319541955195619571958195919601961196219631964196519661967196819691970197119721973197419751976197719781979198019811982198319841985198619871988198919901991199219931994199519961997199819992000200120022003200420052006200720082009201020111899

0

0

0

0

0

0

Sale of professional hair/beauty products

Skin Care

Nails

Hair

Milestones

7.0 Management Summary

7.1 Personnel Plan

Table: Personnel

Personnel PlanFY 2012 FY 2013 FY 2014

Thierry $4,542 $5,000 $6,000Ola $8,314 $9,000 $10,000Oku $5,646 $6,000 $7,000Abdulrahman $6,805 $7,000 $8,000Total People 136 150 160

Total Payroll $25,307 $27,000 $31,000

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8.0 Financial Plan

The salon is expecting growth of at least 5% each year and it anticipate the increase to continue as new clients come to the salon. The financial plan for the next three years includes several new revenue streams from massage therapy and booth rental from affiliated stylists. The projections for the first year are therefore much different from the starting balances, even considering that the past performance included only six months of data. The major accompanying expense is a much higher personnel payroll, as well as higher rent for the location, to accommodate all these people.

 The advertising expenses will be lower than those of similar businesses, because the new website will play a better roll by using it to send our name, message, mission, discounts and other concept out to the public, the online booking system still a "start-up" because the new services will be unknown to many in the community without heavy advertising therefore a traditional means of advertisement will be taken into action. The salon will work hard to keep costs down and to use word-of-mouth as much as possible to build the business.

8.1 Important Assumptions

8.2 Break-even Analysis

Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even ($12,843)

Assumptions:Average Percent Variable Cost 128%Estimated Monthly Fixed Cost $3,550

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Chart: Break-even Analysis

($3,300)

($3,000)

($2,700)

($2,400)

($2,100)

($1,800)

($1,500)

($1,200)

($900)

($600)

($300)

$0

#N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A

Break-even Analysis

8.3 Projected Profit and Loss

Table: Profit and Loss

Pro Forma Profit and LossFY 2012 FY 2013 FY 2014

Sales $1,923 $2,220 $1,980Direct Cost of Sales $2,454 $3,390 $5,350Other Costs of Sales $917 $1,200 $1,600Total Cost of Sales $3,371 $4,590 $6,950

Gross Margin ($1,448) ($2,370) ($4,970)Gross Margin % -75.34% -106.76% -251.01%

ExpensesPayroll $25,307 $27,000 $31,000Marketing/Promotion $917 $1,000 $1,200Depreciation $0 $0 $0Rent $1,995 $1,995 $1,995Utilities $2,726 $3,000 $3,200

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Insurance $3,172 $3,300 $3,600Payroll Taxes $3,796 $4,050 $4,650Other $4,688 $4,800 $5,000

Total Operating Expenses $42,602 $45,145 $50,645

Profit Before Interest and Taxes ($44,050) ($47,515) ($55,615)EBITDA ($44,050) ($47,515) ($55,615) Interest Expense $61 $216 $389 Taxes Incurred $0 $0 $0

Net Profit ($44,111) ($47,731) ($56,004)Net Profit/Sales -2294.38% -2150.05% -2828.46%

Chart: Profit Monthly

($5,000)

($4,000)

($3,000)

($2,000)

($1,000)

$0

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Profit Monthly

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Chart: Profit Yearly

($50,000)

($40,000)

($30,000)

($20,000)

($10,000)

$0

FY 2012 FY 2013 FY 2014

Profit Yearly

Chart: Gross Margin Monthly

($200)

($180)

($160)

($140)

($120)

($100)

($80)

($60)

($40)

($20)

$0

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Gross Margin Monthly

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Chart: Gross Margin Yearly

($4,500)

($4,000)

($3,500)

($3,000)

($2,500)

($2,000)

($1,500)

($1,000)

($500)

$0

FY 2012 FY 2013 FY 2014

Gross Margin Yearly

8.4 Projected Cash Flow

Table: Cash Flow

Pro Forma Cash FlowFY 2012 FY 2013 FY 2014

Cash Received

Cash from OperationsCash Sales $1,923 $2,220 $1,980Subtotal Cash from Operations $1,923 $2,220 $1,980

Additional Cash ReceivedSales Tax, VAT, HST/GST Received $481 $555 $495New Current Borrowing $978 $1,200 $1,400New Other Liabilities (interest-free) $409 $500 $600New Long-term Liabilities $383 $400 $450Sales of Other Current Assets $0 $0 $0Sales of Long-term Assets $0 $0 $0New Investment Received $421 $800 $1,200Subtotal Cash Received $4,594 $5,675 $6,125

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Expenditures FY 2012 FY 2013 FY 2014

Expenditures from OperationsCash Spending $25,307 $27,000 $31,000Bill Payments $18,075 $23,716 $26,652Subtotal Spent on Operations $43,382 $50,716 $57,652

Additional Cash SpentSales Tax, VAT, HST/GST Paid Out $481 $555 $495Principal Repayment of Current Borrowing $0 $0 $0Other Liabilities Principal Repayment $0 $0 $0Long-term Liabilities Principal Repayment $0 $0 $0Purchase Other Current Assets $0 $0 $0Purchase Long-term Assets $0 $0 $0Dividends $0 $0 $0Subtotal Cash Spent $43,863 $51,271 $58,147

Net Cash Flow ($39,268) ($45,596) ($52,022)Cash Balance ($39,268) ($84,865) ($136,887)

Chart: Cash

Net Cash Flow

Cash Balance

($36,000)

($32,000)

($28,000)

($24,000)

($20,000)

($16,000)

($12,000)

($8,000)

($4,000)

$0

Ap

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8.5 Projected Balance Sheet

Table: Balance Sheet

Pro Forma Balance SheetFY 2012 FY 2013 FY 2014

Assets

Current AssetsCash ($39,268) ($84,865) ($136,887)Other Current Assets $0 $0 $0Total Current Assets ($39,268) ($84,865) ($136,887)

Long-term AssetsLong-term Assets $0 $0 $0Accumulated Depreciation $0 $0 $0Total Long-term Assets $0 $0 $0Total Assets ($39,268) ($84,865) ($136,887)

Liabilities and Capital FY 2012 FY 2013 FY 2014

Current LiabilitiesAccounts Payable $2,652 $1,886 $2,218Current Borrowing $978 $2,178 $3,578Other Current Liabilities $409 $909 $1,509Subtotal Current Liabilities $4,039 $4,973 $7,305

Long-term Liabilities $383 $783 $1,233Total Liabilities $4,422 $5,756 $8,538

Paid-in Capital $421 $1,221 $2,421Retained Earnings $0 ($44,111) ($91,842)Earnings ($44,111) ($47,731) ($56,004)Total Capital ($43,690) ($90,621) ($145,425)Total Liabilities and Capital ($39,268) ($84,865) ($136,887)

Net Worth ($43,690) ($90,621) ($145,425)

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Beauty salon

8.6 Business Ratios

Table: Ratios

Ratio AnalysisFY 2012 FY 2013 FY 2014 Industry

ProfileSales Growth n.a. 15.47% -10.81% 1.27%

Percent of Total AssetsOther Current Assets 0.00% 0.00% 0.00% 45.54%Total Current Assets 100.00% 100.00% 100.00% 55.32%Long-term Assets 0.00% 0.00% 0.00% 44.68%Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities -10.28% -5.86% -5.34% 20.71%Long-term Liabilities -0.98% -0.92% -0.90% 74.98%Total Liabilities -11.26% -6.78% -6.24% 95.69%Net Worth 111.26% 106.78% 106.24% 4.31%

Percent of SalesSales 100.00% 100.00% 100.00% 100.00%Gross Margin -75.34% -106.76% -251.01% 75.39%Selling, General & Administrative Expenses

2219.04% 2043.29% 2577.45% 30.08%

Advertising Expenses 47.70% 45.05% 60.61% 2.46%Profit Before Interest and Taxes -2291.20% -2140.32% -2808.84% 6.21%

Main RatiosCurrent -9.72 -17.06 -18.74 1.46Quick -9.72 -17.06 -18.74 1.28Total Debt to Total Assets -11.26% -6.78% -6.24% 95.69%Pre-tax Return on Net Worth 100.96% 52.67% 38.51% 476.96%Pre-tax Return on Assets 112.33% 56.24% 40.91% 20.53%

Additional Ratios FY 2012 FY 2013 FY 2014Net Profit Margin -2294.38% -2150.05% -2828.46% n.aReturn on Equity 0.00% 0.00% 0.00% n.a

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Activity RatiosAccounts Payable Turnover 7.82 12.17 12.17 n.aPayment Days 27 36 28 n.aTotal Asset Turnover 0.00 0.00 0.00 n.a

Debt RatiosDebt to Net Worth 0.00 0.00 0.00 n.aCurrent Liab. to Liab. 0.91 0.86 0.86 n.a

Liquidity RatiosNet Working Capital ($43,307) ($89,838) ($144,192) n.aInterest Coverage -721.15 -219.88 -143.12 n.a

Additional RatiosAssets to Sales -20.42 -38.23 -69.13 n.aCurrent Debt/Total Assets 0% 0% 0% n.aAcid Test -9.72 -17.06 -18.74 n.aSales/Net Worth 0.00 0.00 0.00 n.aDividend Payout 0.00 0.00 0.00 n.a

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Appendix

Table: Sales Forecast

Sales ForecastApr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

SalesHair $19 $23 $29 $49 $47 $51 $50 $48 $53 $52 $54 $57Nail $15 $17 $23 $35 $38 $42 $40 $41 $43 $42 $44 $52skin care $11 $13 $27 $40 $43 $48 $43 $46 $50 $47 $50 $56Sale of professional hair/beauty products

$18 $21 $34 $41 $43 $44 $46 $43 $47 $46 $48 $54

Total Sales $63 $74 $113 $165 $171 $185 $179 $178 $193 $187 $196 $219

Direct Cost of Sales Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb MarHair $31 $44 $55 $55 $66 $49 $73 $69 $76 $75 $79 $87Nail $18 $21 $36 $30 $44 $45 $55 $55 $53 $51 $54 $64Skin care $25 $32 $33 $35 $37 $40 $41 $45 $47 $48 $60 $71Sale of professional hair/beauty products

$23 $36 $42 $43 $50 $55 $59 $61 $65 $69 $73 $79

Subtotal Direct Cost of Sales

$97 $133 $166 $163 $197 $189 $228 $230 $241 $243 $266 $301

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Appendix

Table: Personnel

Personnel PlanApr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Thierry $212 $234 $257 $283 $311 $342 $376 $414 $455 $501 $551 $606Ola $388 $427 $470 $517 $569 $626 $689 $758 $834 $917 $1,009 $1,110Oku $264 $290 $319 $351 $386 $425 $468 $515 $566 $623 $685 $754Abdulrahman $318 $350 $385 $424 $466 $513 $564 $620 $682 $750 $825 $908Total People 48 53 58 64 70 77 85 94 103 113 124 136

Total Payroll $1,182 $1,301 $1,431 $1,575 $1,732 $1,906 $2,097 $2,307 $2,537 $2,791 $3,070 $3,378

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Appendix

Table: Profit and Loss

Pro Forma Profit and Loss

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb MarSales $63 $74 $113 $165 $171 $185 $179 $178 $193 $187 $196 $219Direct Cost of Sales

$97 $133 $166 $163 $197 $189 $228 $230 $241 $243 $266 $301

Other Costs of Sales

$43 $47 $52 $57 $63 $69 $76 $84 $92 $101 $111 $122

Total Cost of Sales

$140 $180 $218 $220 $260 $258 $304 $314 $333 $344 $377 $423

Gross Margin ($77) ($106) ($105) ($55) ($89) ($73) ($125) ($136) ($140) ($157) ($181) ($204)Gross Margin % -

122.73%

-143.24

%

-92.92%

-33.63%

-52.05%

-39.46%

-69.83%

-76.40%

-72.54%

-83.96%

-92.27%

-93.15%

ExpensesPayroll $1,182 $1,301 $1,431 $1,575 $1,732 $1,906 $2,097 $2,307 $2,537 $2,791 $3,070 $3,378Marketing/Promotion

$43 $47 $52 $57 $63 $69 $76 $84 $92 $101 $111 $122

Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Rent $94 $103 $113 $124 $136 $150 $165 $182 $200 $220 $242 $266Utilities $127 $140 $154 $169 $186 $205 $226 $249 $274 $301 $331 $364Insurance $148 $163 $179 $197 $217 $239 $263 $289 $318 $350 $385 $424Payroll Taxes 15

%$177 $195 $215 $236 $260 $286 $315 $346 $381 $419 $461 $507

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Appendix

Other $219 $241 $265 $292 $321 $353 $388 $427 $470 $517 $569 $626

Total Operating Expenses

$1,991 $2,190 $2,409 $2,650 $2,915 $3,208 $3,530 $3,884 $4,272 $4,699 $5,169 $5,687

Profit Before Interest and Taxes

($2,068)

($2,296)

($2,514)

($2,706)

($3,004)

($3,281)

($3,655)

($4,020)

($4,412)

($4,856)

($5,349)

($5,891)

EBITDA ($2,068)

($2,296)

($2,514)

($2,706)

($3,004)

($3,281)

($3,655)

($4,020)

($4,412)

($4,856)

($5,349)

($5,891)

Interest Expense

$1 $1 $2 $2 $3 $4 $5 $6 $7 $8 $10 $11

Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Net Profit ($2,068)

($2,297)

($2,515)

($2,708)

($3,007)

($3,285)

($3,660)

($4,026)

($4,419)

($4,864)

($5,359)

($5,902)

Net Profit/Sales -3290.75

%

-3104.40

%

-2226.02

%

-1644.92

%

-1758.50

%

-1775.67

%

-2044.46

%

-2261.86

%

-2289.51

%

-2601.12

%

-2733.17

%

-2695.00

%

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Appendix

Table: Cash Flow

Pro Forma Cash Flow

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb MarCash Received

Cash from OperationsCash Sales $63 $74 $113 $165 $171 $185 $179 $178 $193 $187 $196 $219Subtotal Cash from Operations

$63 $74 $113 $165 $171 $185 $179 $178 $193 $187 $196 $219

Additional Cash ReceivedSales Tax, VAT, HST/GST Received

25.00%

$16 $19 $28 $41 $43 $46 $45 $45 $48 $47 $49 $55

New Current Borrowing

$45 $50 $55 $61 $67 $74 $81 $89 $98 $108 $119 $131

New Other Liabilities (interest-free)

$19 $21 $23 $25 $28 $31 $34 $37 $41 $45 $50 $55

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Appendix

New Long-term Liabilities

$18 $20 $22 $24 $26 $29 $32 $35 $38 $42 $46 $51

Sales of Other Current Assets

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Sales of Long-term Assets

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New Investment Received

$20 $22 $24 $26 $29 $32 $35 $38 $42 $46 $51 $56

Subtotal Cash Received

$181 $206 $265 $342 $364 $397 $406 $422 $460 $475 $511 $567

Expenditures

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Expenditures from OperationsCash Spending

$1,182 $1,301 $1,431 $1,575 $1,732 $1,906 $2,097 $2,307 $2,537 $2,791 $3,070 $3,378

Bill Payments

$32 $953 $1,074 $1,201 $1,303 $1,450 $1,570 $1,747 $1,903 $2,081 $2,268 $2,494

Subtotal Spent on Operations

$1,214 $2,254 $2,505 $2,776 $3,035 $3,356 $3,667 $4,054 $4,440 $4,872 $5,338 $5,872

Additional

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Appendix

Cash SpentSales Tax, VAT, HST/GST Paid Out

$16 $19 $28 $41 $43 $46 $45 $45 $48 $47 $49 $55

Principal Repayment of Current Borrowing

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other Liabilities Principal Repayment

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Long-term Liabilities Principal Repayment

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Purchase Other Current Assets

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Purchase Long-term Assets

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Subtotal Cash Spent

$1,230 $2,272 $2,534 $2,817 $3,077 $3,402 $3,712 $4,098 $4,488 $4,919 $5,387 $5,927

Net Cash Flow

($1,049)

($2,067)

($2,268)

($2,475)

($2,714) ($3,005) ($3,306) ($3,677) ($4,028) ($4,444) ($4,876) ($5,360)

Cash Balance

($1,049)

($3,116)

($5,385)

($7,860)

($10,573)

($13,578)

($16,884)

($20,561)

($24,589)

($29,033)

($33,909)

($39,268)

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Appendix

Table: Balance Sheet

Pro Forma Balance Sheet

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb MarAssets Starting

Balances

Current AssetsCash $0 ($1,04

9)($3,11

6)($5,38

5)($7,86

0)($10,57

3)($13,57

8)($16,88

4)($20,56

1)($24,58

9)($29,03

3)($33,90

9)($39,26

8)Other Current Assets

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Current Assets

$0 ($1,049)

($3,116)

($5,385)

($7,860)

($10,573)

($13,578)

($16,884)

($20,561)

($24,589)

($29,033)

($33,909)

($39,268)

Long-term AssetsLong-term Assets

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Accumulated Depreciation

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

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Appendix

Total Long-term Assets

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Assets

$0 ($1,049)

($3,116)

($5,385)

($7,860)

($10,573)

($13,578)

($16,884)

($20,561)

($24,589)

($29,033)

($33,909)

($39,268)

Liabilities and Capital

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Current LiabilitiesAccounts Payable

$0 $917 $1,035 $1,157 $1,254 $1,398 $1,512 $1,684 $1,834 $2,006 $2,185 $2,402 $2,652

Current Borrowing

$0 $45 $95 $150 $211 $278 $352 $433 $522 $620 $728 $847 $978

Other Current Liabilities

$0 $19 $40 $63 $88 $116 $147 $181 $218 $259 $304 $354 $409

Subtotal Current Liabilities

$0 $981 $1,170 $1,370 $1,553 $1,792 $2,011 $2,298 $2,574 $2,885 $3,217 $3,603 $4,039

Long-term Liabilities

$0 $18 $38 $60 $84 $110 $139 $171 $206 $244 $286 $332 $383

Total Liabilities

$0 $999 $1,208 $1,430 $1,637 $1,902 $2,150 $2,469 $2,780 $3,129 $3,503 $3,935 $4,422

Paid-in Capital

$0 $20 $42 $66 $92 $121 $153 $188 $226 $268 $314 $365 $421

Retained Earnings

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Earnings $0 ($2,06 ($4,36 ($6,88 ($9,58 ($12,59 ($15,88 ($19,54 ($23,56 ($27,98 ($32,85 ($38,20 ($44,11

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Appendix

8) 6) 1) 9) 6) 1) 1) 7) 6) 0) 9) 1)Total Capital

$0 ($2,048)

($4,324)

($6,815)

($9,497)

($12,475)

($15,728)

($19,353)

($23,341)

($27,718)

($32,536)

($37,844)

($43,690)

Total Liabilities and Capital

$0 ($1,049)

($3,116)

($5,385)

($7,860)

($10,573)

($13,578)

($16,884)

($20,561)

($24,589)

($29,033)

($33,909)

($39,268)

Net Worth $0 ($2,048)

($4,324)

($6,815)

($9,497)

($12,475)

($15,728)

($19,353)

($23,341)

($27,718)

($32,536)

($37,844)

($43,690)

Page 10