Hair and Beauty Salon Sample Business Plan - Financial Plan

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Welcome to the Hair and Beauty Salon Sample Business Plan Financial Plan

Table Of Contents
FINANCIAL PLAN   BREAK-EVEN ANALYSIS   PROJECTED PROFIT AND LOSS   PROJECTED CASH FLOW   PROJECTED BALANCE SHEET   BUSINESS RATIOS

Hair & Beauty Salon 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.

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 sales because most sales are coming from services. We included all costs, however, in the operating expenses area of the profit and loss table. 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. This figure is included under the title "Other" on the profit and loss table. Also under "Other" 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.

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).