HAIR SALON CHAIN BUSINESS PLAN FINANCIAL MODEL EXCEL
CONVEYING A BUSINESS IDEA
Once a man with great ambition and vast experience of working as a hairstylist addressed me to help with his prospective business in the hair and beauty sphere. He was attesting to the matters in the manner the hairdresser would. My mission, instead, was to extrapolate his business vision into the financial scenario.
SETTING UP PURPOSES AND FORMING A PLAN
My client asked a professional financial modeler in my face to prepare an investor-ready business plan. The main questions he wanted us to answer are as follows:
– to understand, whether the business idea is profitable;
– to calculate overall costs of hair salon chain launch;
– to calculate expenses on salaries and wages of hair 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 best prices for haircuts;
– to craft an effective strategy for 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;
– Debt repayment and capital inputs
– Expenses and Wages assumptions
– TOP Expense/Revenue reports
The hair salon financial model rendered the answers to the underlying questions for the business possible:
– How to open the Salon with no money?
– How to write the business plan for the hair and 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 HAIR SALON CHAIN FINANCIAL PROJECTION
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 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