BEAUTY SALON FINANCIAL MODEL
SETTING UP PURPOSES AND FORMING A PLAN
The main questions beauty salon business plan can answer are as follows:
– to understand, whether the beauty salon business idea is profitable;
– to calculate overall costs of opening a beauty salon;
– to calculate expenses on salaries and wages of beauty salon workers;
– to calculate expenses on equipment, suppliers, management, education, and advertising;
– to estimate costs of debt and time needed to loan payback;
– to estimate the beauty salon pricing;
– to craft an effective strategy for beauty salon business development.
The model consists of:
– 5-year comprehensive financial projection
– 3 statements: Income Statement, Cash Flow Statement, and Balance Sheet Statement
– Dashboard with core assumptions, financials, and outputs
– Revenue calculations based on occupancy and price drivers;
– Expenses and Wages assumptions
– TOP Expense/Revenue reports
– Break-even Analysis
– Debt Financing and repayment schedule
– DCF Valuation of the Company
The beauty salon budget rendered the answers to the underlying questions for the business possible:
– How to how to start a beauty salon?
– How to write a business plan for the beauty salon?
– How to do the Break-Even Analysis before starting your Business?
– How to make your Business Profitable?
– How to get your business funded?
– What is a Good Profit Margin for a new Small Business?
BENEFITS OF USING BEAUTY SALON BUDGET SPREADSHEET
First and foremost, we did not hard-code any assumptions.
It is very helpful both for the client and financial modeler, as all the variables could be edited directly from the dashboard or from the revenue/expense/wages sections.
Thanks to that, we could test different alternatives and make any edits literally on the fly.
Besides it, the action period of budget modeling was editable.
Last but not least, the beauty salon chain financial model considered the interest and the repayment period of the debt.
In result, the user received maximally accurate financial statements summary.
Thus, our salon chain financial metrics was flexible and editable, which provided the client with great user experience and confidence in the profitability of his business idea.Download DEMO