Hair and Beauty Salon
Sample Business Plan
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Table of Contents
Executive Summary ...................................................................................................................... 1
Introduction ..................................................................................................................................... 1
Chart: Highlights ........................................................................................................................ 2
Keys to Success............................................................................................................................... 2
Company Summary ...................................................................................................................... 3
Start-up Summary ........................................................................................................................... 3
Table: Start-up ............................................................................................................................ 3
Table: Start-up Funding ............................................................................................................. 4
Chart: Start-up ............................................................................................................................ 5
Products and Services ................................................................................................................... 2
Hair ............................................................................................................................................. 2
Nails ............................................................................................................................................ 2
Skin Care ..................................................................................................................................... 2
Strategy and Implementation Summary .................................................................................... 2
Competitive Edge............................................................................................................................ 2
Marketing Strategy.......................................................................................................................... 3
Sales Forecast.................................................................................................................................. 3
Table: Sales Forecast ................................................................................................................. 4
Chart: Sales Monthly .................................................................................................................. 4
Chart: Sales by Year ................................................................................................................... 5
Milestones ....................................................................................................................................... 6
Table: Milestones ........................................................................................................................ 6
Chart: Milestones........................................................................................................................ 7
Management Summary ................................................................................................................ 8
Personnel Plan ................................................................................................................................. 8
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Table: Personnel ......................................................................................................................... 8
Financial Plan ................................................................................................................................ 9
Important Assumptions ................................................................................................................... 9
Table: General Assumptions ....................................................................................................... 9
Projected Cash Flow ..................................................................................................................... 10
Chart: Cash ............................................................................................................................... 10
Table: Cash Flow ...................................................................................................................... 11
Break-even Analysis ..................................................................................................................... 12
Chart: Break-even Analysis ...................................................................................................... 12
Table: Break-even Analysis ...................................................................................................... 12
Projected Profit and Loss .............................................................................................................. 13
Chart: Gross Margin Monthly .................................................................................................. 13
Chart: Gross Margin Yearly ..................................................................................................... 14
Table: Profit and Loss .............................................................................................................. 15
Chart: Profit Monthly ............................................................................................................... 16
Chart: Profit Yearly .................................................................................................................. 16
Balance Sheet ................................................................................................................................ 17
Table: Balance Sheet ................................................................................................................ 17
Business Ratios ............................................................................................................................. 18
Table: Ratios ............................................................................................................................. 18
Appendix ......................................................................................................................................... i
Sales Forecast (With Monthly Detail) ............................................................................................. i
Personnel (With Monthly Details) .................................................................................................. ii
Profit and Loss Statement (With Monthly Detail) ......................................................................... iii
Cash Flow Statement (With Monthly Detail) ................................................................................ iv
Balance Sheet (With Monthly Detail)............................................................................................. v
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Executive Summary
Introduction
Trend Setters is a full-service beauty salon dedicated to consistently providing high customer
satisfaction by rendering excellent service, quality products, and furnishing an enjoyable
atmosphere at an acceptable price/value relationship. We will also maintain a friendly, fair, and
creative work environment, which respects diversity, ideas, and hard work.
Our Mission: To supply services and products that enhance our clients' physical appearance and
mental relaxation.
Our Motto: "The Trend Begins Here!"
The timing is right for starting this new venture. Patiently searching for six months for the
perfect location, one was finally found. The demand from the owner's clients, as well as the
ambitions of the owner to one day start her own salon, and the procurement of highly
professional and qualified beauticians to support the salon, has made this business one of great
potential.
Curley Comb, co-owner with Roller Comb, Jr., her husband, has worked in a prestigious, upscale
salon in MyTown, Texas for the past two years. Curley has created a large client following
through hard work and dedication. Curley, and her talented team of beauticians, has what it takes
to make this venture an extremely successful one. We expect our growing reputation to lead to
new clients and beauticians to support our anticipated growth.
To achieve our objectives, Trend Setters is seeking additional loan financing. This loan will be
paid from the cash flow from the business, and will be collateralized by the assets of the
company, and backed by the character, experience, and personal guarantees of the owners.
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Chart: Highlights
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Keys to Success
The keys to success in our business are:
• Location: providing an easily accessible location for customers.
• Environment: providing an environment conducive to giving relaxing and professional
service.
• Convenience: offering clients a wide range of services in one setting, and extended
business hours.
• Reputation: reputation of the owner and other "beauticians" as providing superior
personal service.
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Company Summary
Trend Setters will, upon commencement of operations, sell a wide range of beauty services and
products. We will provide quality hair, nail, and skin services, along with top lines of beauty
products. What will set Trend Setters apart from the competition is our commitment to providing
all of these services in one convenient location.
The salon will be located in a retail strip mall at 1234 Stylish Road, MyTown. The salon will
utilize 1,540 square feet. The location is strategically situated on one of the busiest streets in
MyTown. It is a high profile area, with easy access from all parts of town.
Start-up Summary
After spending several months searching for a salon to purchase, the owners decided to
start a salon from the ground up. The start-up capital will be used for the design, leasehold
improvements, and equipment of the salon.
Leasehold improvements will amount to approximately $32,500, and salon equipment will
cost about $27,000. The owner will invest $500 for cash-on-hand at starting date.
Table: Start-up
Start-up
Requirements
Start-up Expenses
Rent deposit
$1,817
Other
$0
Total Start-up Expenses
$1,817
Start-up Assets
Cash Required
$500
Other Current Assets
$600
Long-term Assets
$59,500
Total Assets
$60,600
Total Requirements
$62,417
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Table: Start-up Funding
Start-up Funding
Start-up Expenses to Fund
$1,817
Start-up Assets to Fund
$60,600
Total Funding Required
$62,417
Assets
Non-cash Assets from Start-up
$60,100
Cash Requirements from Start-up
$500
Additional Cash Raised
$0
Cash Balance on Starting Date
$500
Total Assets
$60,600
Liabilities and Capital
Liabilities
Current Borrowing
$0
Long-term Liabilities
$61,917
Accounts Payable (Outstanding Bills)
$0
Other Current Liabilities (interest-free)
$0
Total Liabilities
$61,917
Capital
Planned Investment
Owner
$500
Investor
$0
Additional Investment Requirement
$0
Total Planned Investment
$500
Loss at Start-up (Start-up Expenses)
($1,817)
Total Capital
($1,317)
Total Capital and Liabilities
$60,600
Total Funding
$62,417
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Chart: Start-up
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Products and Services
Trend Setters is considered an upscale full-service beauty salon. We will offer a wide range of
services that include:
Hair
• Cuts
• Relaxers
• Perms
• Colors
• Shampoo
• Conditioning
• Curling
• Reconstructing
• Weaving
• waving.
Nails
• Manicures
• Pedicures
• Polish
• Sculptured nails
Skin Care
• European facials
• Body waxing
• Massage
Strategy and Implementation Summary
Skill at what we do, good customer service, and creating a pleasant environment for our
customers will be important to implementing our business plan.
Competitive Edge
Trend Setters wants to set itself apart from other beauty salons that may offer only one or two
types of services. Having come from such a salon, Curley has realized, from talking with her
clients, that they desire all of the services that we are proposing, but they remain frustrated
because they must get their hair done at one place, and nails done at another. Although the focus
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of Trend Setters is hair services, we do wish to offer our clients the convenience of these other
services in one location.
There are a number of salons like ours, but they are mainly in the very high income parts of
MyTown and surrounding areas. We do not intend to compete with these so called "Day Spas."
We wish to offer a middle ground for those clients who can't quite afford those high-end luxury
salons.
Our business atmosphere will be a relaxing one where clients can kick back and be pampered.
Soft drinks will be offered to clients as they enter for service. Televisions will be located in the
waiting and hair-drying area.
Marketing Strategy
Our marketing strategy is a simple one: satisfied clients are our best marketing tool. When a
client leaves our business with a new look, he or she is broadcasting our name and quality to the
public. Most of our clients will be referrals from existing clients.
No major advertising campaigns are anticipated. Our research has shown that word of mouth is
the best advertising for this type of business. We will, however, run specials throughout the
week. We will also ask clients for referrals, and reward them with discounted or free services
depending on the number of clients they bring. We will also offer discounts to the new clients
who have been referred. There are plans for a lottery that will offer a free trip to, say, Cancun. A
client would simply refer new clients to us, and we will place a card in a box for each client he or
she brings. The more they bring, the more chances they have of winning the trip.
Sales Forecast
We anticipate the highest peak on the months of November and December in our sales forecast,
due to the holiday seasons. In November, there is Ramadan, and for non-muslim Malaysians and
Indonesians, it means vacation time. Approximately 1.5 million Indonesians visit Singapore each
year, mostly for shopping and dining. Then in December, we anticipate more tourists coming
into Singapore; this explains the jumped of sales in these last two months of the year.
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Table: Sales Forecast
Sales Forecast
Year 1
Year 2
Year 3
Sales
Owner
$49,600
$57,040
$65,696
Stylist #1
$49,600
$57,040
$65,596
Barber #1
$16,800
$19,320
$22,218
Stylist #2
$22,800
$25,622
$29,465
Stylist #3
$0
$22,000
$24,000
Nails and massage
$18,000
$20,000
$22,000
Product sales
$9,600
$10,000
$11,000
Total Sales
$166,400
$211,022
$239,975
Direct Cost of Sales
Year 1
Year 2
Year 3
Product Costs
$4,320
$4,300
$4,400
Other
$0
$0
$0
Subtotal Direct Cost of Sales
$4,320
$4,300
$4,400
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Chart: Sales Monthly
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Chart: Sales by Year
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Milestones
The milestones table and chart show the specific detail about actual program activities that
should be taking place during the year. Each one has its manager, starting date, ending date, and
budget. During the year we will be keeping track of implementation against plan, with reports on
the timely completion of these activities as planned.
Table: Milestones
Milestones
Milestone
Start Date
End Date
Budget
Manager
Department
Sample Milestones
1/4/2008
1/4/2008
$0
ABC
Department
Finish Business Plan
9/3/2010
10/3/2010
$100
Dude
Boss
Acquire Financing
9/13/2010
11/2/2010
$200
Dudette
Legumers
Ah HA! Event
9/23/2010
9/28/2010
$60
Marianne
Bosses
Ah Merde Alors! Event
10/23/2010
10/28/2010
$250
Marionette
Bouc
émissaire
Grand Opening
11/2/2010
11/7/2010
$500
Gloworm
Nobs
Marketing Program Starts
10/3/2010
10/28/2010
$1,000
Glower
Marketeers
Plan vs. Actual Review
2/28/2011
3/7/2011
$0
Galore
Alles
First Break-even Month
7/2/2011
8/1/2011
$0
Bouys
Salers
Hire Employees
5/31/2011
6/30/2011
$150
Gulls
HRM
Upgrade Business Plan Pro
8/19/2011
8/21/2011
$100
Brass
Bossies
Totals
$2,360
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Chart: Milestones
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Management Summary
Trend Setters will be organized and managed in a creative and innovative fashion to generate
very high levels of customer satisfaction, and to create a working climate conducive to a high
degree of personal development and economic satisfaction for employees.
Training classes to help improve employee product knowledge and skills will be conducted on a
regular basis. As the business grows, the company will consider offering an employee benefit
package to include health and vacation benefits for everyone.
Personnel Plan
The personnel plan calls for a receptionist who will greet customers and receive payments for
services and products. There will be five hair stylists, one barber, one nail technician, one
facialist, and a massage therapist. Everyone but the receptionist will be contract workers, and
will be paid a sliding commission scale based on the amount of revenue created. Future plans
include the hiring of a shampoo technician as the business expands.
In the first year, assumptions are that there will only be three hair stylists, a barber, and part time
nail, facial, and massage technician until the business can build a reputation that will attract
others to work there.
Table: Personnel
Personnel Plan
Year 1
Year 2
Year 3
Owner (Stylist)
$24,000
$25,000
$26,000
Receptionist
$14,400
$15,120
$15,876
Shampoo Tech
$8,000
$12,400
$13,000
Total People
3
3
3
Total Payroll
$46,400
$52,520
$54,876
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Financial Plan
Our goal is to be a profitable business beginning in the first month. The business will not have to
wait long for clients to learn about it since the stylists will already have an existing client base.
To assure the start-up funds lender that the owners are financially stable, a personal financial
statement is enclosed illustrating other sources of income that include interest and dividend
income from investments ($2,840), salary income ($29,658), and commission income ($15,000).
Important Assumptions
The financials that are enclosed have a number of assumptions:
Revenues will grow at an annual rate of 15%, increasing 20% in November and December due to
a historical jump in revenues at this time of year. We anticipate this increase to stay steady
throughout the following year to account for the normal flow of new clients coming into the
salon. Estimates for sales revenue and growth are intentionally low, while anticipated expenses
are exaggerated to the high side to illustrate a worst case scenario.
We did not use cost of goods sold in our calculations of net service sales, but included all related
recurring expenses, such as payroll and supplies, in the operating expenses area of the profit and
loss table. The only direct costs in the sales forecast are for projected product sales.
Product sales are a minimal part of our market. We are not quite sure how much revenue will be
derived from products, so we took a low-ball approach and estimated sales of $800 a month.
Also in the sales projections table are services such as nails and massages. We are not quite sure
how much revenue these two services will generate. We are certain that in time these services
will be a large part of our revenue, but to err on the conservative side, we estimate revenues from
these services to be only $1,500 a month for the first year.
Table: General Assumptions
General Assumptions
Year 1
Year 2
Year 3
Plan Month
1
2
3
Current Interest Rate
10%
10%
10%
Long-Term Interest Rate
10%
10%
10%
Tax Rate
30%
30%
30%
Other
0
0
0
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Projected Cash Flow
We expect to manage cash flow over the next three years simply by the growth of the cash flow
of the business. The business will generate more than enough cash flow to cover all of its
expenses.
Chart: Cash
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Table: Cash Flow
Pro Forma Cash Flow
Year 1
Year 2
Year 3
Cash Received
Cash from Operations
Cash Sales
$166,400
$211,022
$239,975
Subtotal Cash from Operations
$166,400
$211,022
$239,975
Additional Cash Received
Sales Tax, VAT, HST/GST Received
$0
$0
$0
New Current Borrowing
$0
$0
$0
New Other Liabilities (interest-free)
$0
$0
$0
New Long-term Liabilities
$0
$0
$0
Sales of Other Current Assets
$0
$0
$0
Sales of Long-term Assets
$0
$0
$0
New Investment Received
$0
$0
$0
Subtotal Cash Received
$166,400
$211,022
$239,975
Expenditures
Year 1
Year 2
Year 3
Expenditures from Operations
Cash Spending
$46,400
$52,520
$54,876
Bill Payments
$99,540
$128,730
$147,285
Subtotal Spent on Operations
$145,940
$181,250
$202,161
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out
$0
$0
$0
Principal Repayment of Current
Borrowing
$0
$0
$0
Other Liabilities Principal Repayment
$0
$0
$0
Long-term Liabilities Principal
Repayment
$12,000
$12,000
$12,000
Purchase Other Current Assets
$0
$0
$0
Purchase Long-term Assets
$0
$0
$0
Dividends
$0
$0
$0
Subtotal Cash Spent
$157,940
$193,250
$214,161
Net Cash Flow
$8,460
$17,772
$25,814
Cash Balance
$8,960
$26,733
$52,547
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Break-even Analysis
The break-even analysis shows that Trend Setters has a good balance of fixed costs and
sufficient sales strength to remain healthy. This calculation is focused on service sales, and
excludes costs related to product sales. Our conservative forecast shows the salon just passing
the break-even point throughout most of the first year, but we expect actual sales to be higher.
Chart: Break-even Analysis
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Table: Break-even Analysis
Break-even Analysis
Monthly Revenue Break-even
$12,995
Assumptions:
Average Percent Variable Cost
3%
Estimated Monthly Fixed Cost
$12,657
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Projected Profit and Loss
The following table shows our very conservative profit and loss projections for the next three
years. The table includes the payments for all independently contracted stylists and technicians,
as well for all regularly occurring supply expenses associated with service sales.
Chart: Gross Margin Monthly
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Chart: Gross Margin Yearly
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Table: Profit and Loss
Pro Forma Profit and Loss
Year 1
Year 2
Year 3
Sales
$166,400
$211,022
$239,975
Direct Cost of Sales
$4,320
$4,300
$4,400
Other Costs of Sales
$0
$0
$0
Total Cost of Sales
$4,320
$4,300
$4,400
Gross Margin
$162,080
$206,722
$235,575
Gross Margin %
97.40%
97.96%
98.17%
Expenses
Payroll
$46,400
$52,520
$54,876
Marketing/Promotion
$22,800
$24,000
$26,000
Depreciation
$8,146
$8,146
$8,146
Rent
$22,740
$22,740
$22,740
Utilities
$4,200
$4,200
$4,200
Insurance
$1,200
$1,200
$1,200
Payroll Taxes
$0
$0
$0
Independently contracted stylists
$40,400
$55,000
$69,000
Supplies
$6,000
$6,000
$6,000
Other
$0
$0
$0
Total Operating Expenses
$151,886
$173,806
$192,162
Profit Before Interest and Taxes
$10,194
$32,916
$43,413
EBITDA
$18,340
$41,062
$51,559
Interest Expense
$5,542
$4,392
$3,192
Taxes Incurred
$1,396
$8,557
$12,066
Net Profit
$3,257
$19,967
$28,155
Net Profit/Sales
1.96%
9.46%
11.73%
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Chart: Profit Monthly
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Chart: Profit Yearly
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Balance Sheet
As shown in the balance sheet, we expect a healthy growth in net worth.
Table: Balance Sheet
Pro Forma Balance Sheet
Year 1
Year 2
Year 3
Assets
Current Assets
Cash
$8,960
$26,733
$52,547
Other Current Assets
$600
$600
$600
Total Current Assets
$9,560
$27,333
$53,147
Long-term Assets
Long-term Assets
$59,500
$59,500
$59,500
Accumulated Depreciation
$8,146
$16,292
$24,438
Total Long-term Assets
$51,354
$43,208
$35,062
Total Assets
$60,914
$70,541
$88,209
Liabilities and Capital
Year 1
Year 2
Year 3
Current Liabilities
Accounts Payable
$9,057
$10,717
$12,230
Current Borrowing
$0
$0
$0
Other Current Liabilities
$0
$0
$0
Subtotal Current Liabilities
$9,057
$10,717
$12,230
Long-term Liabilities
$49,917
$37,917
$25,917
Total Liabilities
$58,974
$48,634
$38,147
Paid-in Capital
$500
$500
$500
Retained Earnings
($1,817)
$1,440
$21,407
Earnings
$3,257
$19,967
$28,155
Total Capital
$1,940
$21,907
$50,062
Total Liabilities and Capital
$60,914
$70,541
$88,209
Net Worth
$1,940
$21,907
$50,062
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18
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third parties without the express written consent of the plan author.
Business Ratios
Business ratios for the years of this plan are shown below. Industry profile ratios based on the
Standard Industrial Classification (SIC) Index code 7231, Beauty Shops, are shown for
comparison.
Table: Ratios
Ratio Analysis
Year 1
Year 2
Year 3
Industry
Profile
Sales Growth
n.a.
26.82%
13.72%
7.35%
Percent of Total Assets
Other Current Assets
0.98%
0.85%
0.68%
50.11%
Total Current Assets
15.69%
38.75%
60.25%
64.74%
Long-term Assets
84.31%
61.25%
39.75%
35.26%
Total Assets
100.00%
100.00%
100.00%
100.00%
Current Liabilities
14.87%
15.19%
13.86%
21.71%
Long-term Liabilities
81.95%
53.75%
29.38%
25.39%
Total Liabilities
96.82%
68.94%
43.25%
47.10%
Net Worth
3.18%
31.06%
56.75%
52.90%
Percent of Sales
Sales
100.00%
100.00%
100.00%
100.00%
Gross Margin
97.40%
97.96%
98.17%
100.00%
Selling, General &
Administrative Expenses
95.45%
88.50%
86.43%
67.01%
Advertising Expenses
4.90%
3.86%
3.39%
2.18%
Profit Before Interest and Taxes
6.13%
15.60%
18.09%
4.59%
Main Ratios
Current
1.06
2.55
4.35
1.97
Quick
1.06
2.55
4.35
1.46
Total Debt to Total Assets
96.82%
68.94%
43.25%
53.38%
Pre-tax Return on Net Worth
239.86%
130.21%
80.34%
8.92%
Pre-tax Return on Assets
7.64%
40.44%
45.60%
19.14%
Additional Ratios
Year 1
Year 2
Year 3
Net Profit Margin
1.96%
9.46%
11.73%
n.a
Return on Equity
167.90%
91.15%
56.24%
n.a
Activity Ratios
Accounts Payable Turnover
11.99
12.17
12.17
n.a
Payment Days
27
28
28
n.a
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Total Asset Turnover
2.73
2.99
2.72
n.a
Debt Ratios
Debt to Net Worth
30.41
2.22
0.76
n.a
Current Liab. to Liab.
0.15
0.22
0.32
n.a
Liquidity Ratios
Net Working Capital
$503
$16,616
$40,917
n.a
Interest Coverage
1.84
7.50
13.60
n.a
Additional Ratios
Assets to Sales
0.37
0.33
0.37
n.a
Current Debt/Total Assets
15%
15%
14%
n.a
Acid Test
1.06
2.55
4.35
n.a
Sales/Net Worth
85.79
9.63
4.79
n.a
Dividend Payout
0.00
0.00
0.00
n.a
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Appendix
Sales Forecast (With Monthly Detail)
Sales Forecast
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Sales
Owner
0%
$3,600
$3,600
$3,600
$3,600
$4,400
$4,400
$4,400
$4,400
$4,400
$4,400
$4,400
$4,400
Stylist #1
0%
$3,600
$3,600
$3,600
$3,600
$4,400
$4,400
$4,400
$4,400
$4,400
$4,400
$4,400
$4,400
Barber #1
0%
$1,200
$1,200
$1,200
$1,200
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
Stylist #2
0%
$1,700
$1,700
$1,700
$1,700
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
Stylist #3
0%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Nails and massage
0%
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
Product sales
0%
$800
$800
$800
$800
$800
$800
$800
$800
$800
$800
$800
$800
Total Sales
$12,400
$12,400
$12,400
$12,400
$14,600
$14,600
$14,600
$14,600
$14,600
$14,600
$14,600
$14,600
Direct Cost of Sales
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Product Costs
$360
$360
$360
$360
$360
$360
$360
$360
$360
$360
$360
$360
Other
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Subtotal Direct Cost
of Sales
$360
$360
$360
$360
$360
$360
$360
$360
$360
$360
$360
$360
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Personnel (With Monthly Details)
Personnel Plan
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Owner (Stylist)
0%
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
Receptionist
0%
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
Shampoo Tech
0%
$0
$0
$0
$0
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
Total People
2
2
2
2
3
3
3
3
3
3
3
3
Total Payroll
$3,200
$3,200
$3,200
$3,200
$4,200
$4,200
$4,200
$4,200
$4,200
$4,200
$4,200
$4,200
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iii
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Profit and Loss Statement (With Monthly Detail)
Pro Forma Profit and
Loss
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Sales
$12,400
$12,400
$12,400
$12,400
$14,600
$14,600
$14,600
$14,600
$14,600
$14,600
$14,600
$14,600
Direct Cost of Sales
$360
$360
$360
$360
$360
$360
$360
$360
$360
$360
$360
$360
Other Costs of Sales
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total Cost of Sales
$360
$360
$360
$360
$360
$360
$360
$360
$360
$360
$360
$360
Gross Margin
$12,040
$12,040
$12,040
$12,040
$14,240
$14,240
$14,240
$14,240
$14,240
$14,240
$14,240
$14,240
Gross Margin %
97.10%
97.10%
97.10%
97.10%
97.53%
97.53%
97.53%
97.53%
97.53%
97.53%
97.53%
97.53%
Expenses
Payroll
$3,200
$3,200
$3,200
$3,200
$4,200
$4,200
$4,200
$4,200
$4,200
$4,200
$4,200
$4,200
Marketing/Promotion
$1,900
$1,900
$1,900
$1,900
$1,900
$1,900
$1,900
$1,900
$1,900
$1,900
$1,900
$1,900
Depreciation
$633
$683
$683
$683
$683
$683
$683
$683
$683
$683
$683
$683
Rent
$1,895
$1,895
$1,895
$1,895
$1,895
$1,895
$1,895
$1,895
$1,895
$1,895
$1,895
$1,895
Utilities
$350
$350
$350
$350
$350
$350
$350
$350
$350
$350
$350
$350
Insurance
$100
$100
$100
$100
$100
$100
$100
$100
$100
$100
$100
$100
Payroll Taxes
15%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Independently
contracted stylists
$2,700
$2,700
$2,700
$2,700
$3,700
$3,700
$3,700
$3,700
$3,700
$3,700
$3,700
$3,700
Supplies
15%
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
Other
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total Operating
Expenses
$11,278
$11,328
$11,328
$11,328
$13,328
$13,328
$13,328
$13,328
$13,328
$13,328
$13,328
$13,328
Profit Before Interest
and Taxes
$762
$712
$712
$712
$912
$912
$912
$912
$912
$912
$912
$912
EBITDA
$1,395
$1,395
$1,395
$1,395
$1,595
$1,595
$1,595
$1,595
$1,595
$1,595
$1,595
$1,595
Interest Expense
$508
$499
$491
$483
$474
$466
$458
$449
$441
$433
$424
$416
Taxes Incurred
$76
$64
$66
$69
$131
$134
$136
$139
$141
$144
$146
$149
Net Profit
$178
$149
$155
$161
$306
$312
$318
$324
$330
$336
$341
$347
Net Profit/Sales
1.44%
1.20%
1.25%
1.29%
2.10%
2.14%
2.18%
2.22%
2.26%
2.30%
2.34%
2.38%
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iv
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Cash Flow Statement (With Monthly Detail)
Pro Forma Cash Flow
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Cash Received
Cash from Operations
Cash Sales
$12,400
$12,400
$12,400
$12,400
$14,600
$14,600
$14,600
$14,600
$14,600
$14,600
$14,600
$14,600
Subtotal Cash from Operations
$12,400
$12,400
$12,400
$12,400
$14,600
$14,600
$14,600
$14,600
$14,600
$14,600
$14,600
$14,600
Additional Cash Received
Sales Tax, VAT, HST/GST
Received
0.00%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
New Current Borrowing
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
New Other Liabilities (interest-
free)
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
New Long-term Liabilities
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
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
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Subtotal Cash Received
$12,400
$12,400
$12,400
$12,400
$14,600
$14,600
$14,600
$14,600
$14,600
$14,600
$14,600
$14,600
Expenditures
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Expenditures from Operations
Cash Spending
$3,200
$3,200
$3,200
$3,200
$4,200
$4,200
$4,200
$4,200
$4,200
$4,200
$4,200
$4,200
Bill Payments
$280
$8,388
$8,368
$8,362
$8,392
$9,410
$9,405
$9,399
$9,393
$9,387
$9,381
$9,375
Subtotal Spent on Operations
$3,480
$11,588
$11,568
$11,562
$12,592
$13,610
$13,605
$13,599
$13,593
$13,587
$13,581
$13,575
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid
Out
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
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
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
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
$0
Subtotal Cash Spent
$4,480
$12,588
$12,568
$12,562
$13,592
$14,610
$14,605
$14,599
$14,593
$14,587
$14,581
$14,575
Net Cash Flow
$7,920
($188)
($168)
($162)
$1,008
($10)
($5)
$1
$7
$13
$19
$25
Cash Balance
$8,420
$8,232
$8,064
$7,902
$8,911
$8,900
$8,896
$8,897
$8,904
$8,917
$8,935
$8,960
Trend Setters Hair Studio
v
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the
understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
Balance Sheet (With Monthly Detail)
Pro Forma Balance Sheet
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Assets
Starting
Balances
Current Assets
Cash
$500
$8,420
$8,232
$8,064
$7,902
$8,911
$8,900
$8,896
$8,897
$8,904
$8,917
$8,935
$8,960
Other Current Assets
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
Total Current Assets
$1,100
$9,020
$8,832
$8,664
$8,502
$9,511
$9,500
$9,496
$9,497
$9,504
$9,517
$9,535
$9,560
Long-term Assets
Long-term Assets
$59,500
$59,500
$59,500
$59,500
$59,500
$59,500
$59,500
$59,500
$59,500
$59,500
$59,500
$59,500
$59,500
Accumulated Depreciation
$0
$633
$1,316
$1,999
$2,682
$3,365
$4,048
$4,731
$5,414
$6,097
$6,780
$7,463
$8,146
Total Long-term Assets
$59,500
$58,867
$58,184
$57,501
$56,818
$56,135
$55,452
$54,769
$54,086
$53,403
$52,720
$52,037
$51,354
Total Assets
$60,600
$67,887
$67,016
$66,165
$65,320
$65,646
$64,952
$64,265
$63,583
$62,907
$62,237
$61,572
$60,914
Liabilities and Capital
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Current Liabilities
Accounts Payable
$0
$8,109
$8,089
$8,084
$8,078
$9,097
$9,091
$9,086
$9,080
$9,074
$9,069
$9,063
$9,057
Current Borrowing
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Other Current Liabilities
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Subtotal Current Liabilities
$0
$8,109
$8,089
$8,084
$8,078
$9,097
$9,091
$9,086
$9,080
$9,074
$9,069
$9,063
$9,057
Long-term Liabilities
$61,917
$60,917
$59,917
$58,917
$57,917
$56,917
$55,917
$54,917
$53,917
$52,917
$51,917
$50,917
$49,917
Total Liabilities
$61,917
$69,026
$68,006
$67,001
$65,995
$66,014
$65,008
$64,003
$62,997
$61,991
$60,986
$59,980
$58,974
Paid-in Capital
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
Retained Earnings
($1,817)
($1,817)
($1,817)
($1,817)
($1,817)
($1,817)
($1,817)
($1,817)
($1,817)
($1,817)
($1,817)
($1,817)
($1,817)
Earnings
$0
$178
$327
$482
$642
$949
$1,261
$1,579
$1,903
$2,232
$2,568
$2,909
$3,257
Total Capital
($1,317)
($1,139)
($990)
($835)
($675)
($368)
($56)
$262
$586
$915
$1,251
$1,592
$1,940
Total Liabilities and Capital
$60,600
$67,887
$67,016
$66,165
$65,320
$65,646
$64,952
$64,265
$63,583
$62,907
$62,237
$61,572
$60,914
Net Worth
($1,317)
($1,139)
($990)
($835)
($675)
($368)
($56)
$262
$586
$915
$1,251
$1,592
$1,940
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