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

Highlights

$0

($10,000)

Sales
($20,000)
Gross Margin

($30,000) Net Profit

($40,000)

($50,000)

FY 2012 FY 2013 FY 2014

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. Hair
replacement 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.
 
Massages
In 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: TNS
World 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 Analysis
2011 2012 2013 2014 2015
Potential Customers Growth CAGR
Hair 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 20% 1,600 1,920 2,304 2,765 3,318 20.00%
hair/beauty products
Total 25.43% 7,200 9,020 11,310 14,191 17,820 25.43%

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Chart: Market Analysis (Pie)

Market Analysis (Pie)

Hair

Nail

Skin care

Sale of professional hair/beauty products

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 replacement
in 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 Salon
the 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 Forecast
FY 2012 FY 2013 FY 2014
Sales
Hair $532 $600 $700
Nail $432 $550 $6,50
skin care $474 $540 $640
Sale of professional hair/beauty products $485 $530 $640
Total Sales $1,923 $2,220 $1,980

Direct Cost of Sales FY 2012 FY 2013 FY 2014

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

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Beauty salon

Chart: Sales Monthly

Sales Monthly
$220

$200

$180

$160
Hair
$140
Nail
$120
skin care
$100

$80 Sale of professional hair/beauty products

$60

$40

$20

$0

Chart: Sales by Year

Sales by Year

$2,700

$2,400

$2,100
Hair
$1,800
Nail
$1,500
skin care
$1,200
Sale of professional hair/beauty products
$900

$600

$300

$0
FY 2012 FY 2013 FY 2014

6.5 Milestones

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Table: Milestones

Milestones

Milestone Start Date End Date Budget Manager Department

Hair 4/11/2011 5/11/2012 $30,000 Thiery Hair
Department
Nails 4/11/2011 5/11/2012 $25,000 Ola Nails
Department
Skin Care 4/11/2011 5/11/2012 $25,000 Oku Skin Care
Department
Sale of professional 4/11/2011 5/11/2012 $20,000 Abdulrahman Sale of
hair/beauty products professional
hair/beauty
products
Department
5/11/2011 $0 ABC Department

Totals $100,000

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Chart: Milestones

Milestones

Hair

Nails

Skin Care

Sale of professional hair/beauty products

0
1899
1900
1901
1902
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7.0 Management Summary

7.1 Personnel Plan

Table: Personnel

Personnel Plan
FY 2012 FY 2013 FY 2014
Thierry $4,542 $5,000 $6,000
Ola $8,314 $9,000 $10,000
Oku $5,646 $6,000 $7,000
Abdulrahman $6,805 $7,000 $8,000
Total 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

Break-even Analysis
$0

($300)
($600)

($900)
($1,200)

($1,500)
($1,800)

($2,100)
($2,400)

($2,700)
($3,000)

($3,300)

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

8.3 Projected Profit and Loss

Table: Profit and Loss

Pro Forma Profit and Loss

FY 2012 FY 2013 FY 2014
Sales $1,923 $2,220 $1,980
Direct Cost of Sales $2,454 $3,390 $5,350
Other Costs of Sales $917 $1,200 $1,600
Total 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%

Expenses
Payroll $25,307 $27,000 $31,000
Marketing/Promotion $917 $1,000 $1,200
Depreciation $0 $0 $0
Rent $1,995 $1,995 $1,995
Utilities $2,726 $3,000 $3,200
Insurance $3,172 $3,300 $3,600
Payroll Taxes $3,796 $4,050 $4,650
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Other $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

Profit Monthly

$0

($1,000)

($2,000)

($3,000)

($4,000)

($5,000)

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

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Chart: Profit Yearly

Profit Yearly

$0

($10,000)

($20,000)

($30,000)

($40,000)

($50,000)

FY 2012 FY 2013 FY 2014

Chart: Gross Margin Monthly

Gross Margin Monthly

$0

($20)

($40)

($60)

($80)

($100)

($120)

($140)

($160)

($180)

($200)
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

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Chart: Gross Margin Yearly

Gross Margin Yearly

$0

($500)

($1,000)

($1,500)

($2,000)

($2,500)

($3,000)

($3,500)
($4,000)

($4,500)

FY 2012 FY 2013 FY 2014

8.4 Projected Cash Flow

Table: Cash Flow

Pro Forma Cash Flow

FY 2012 FY 2013 FY 2014
Cash Received

Cash from Operations

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

Additional Cash Received

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

Expenditures FY 2012 FY 2013 FY 2014

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Expenditures from Operations

Mar
Cash Spending $25,307 $27,000 $31,000
Bill Payments $18,075 $23,716 $26,652

Nov Dec Jan Feb

Subtotal Spent on Operations $43,382 $50,716 $57,652

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $481 $555 $495
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0

Aug Sep Oct

Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $43,863 $51,271 $58,147

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

Chart: Cash

Cash
$0

($4,000)

($8,000)

($12,000)

($16,000) Net Cash Flow

($20,000) Cash Balance
($24,000)

($28,000)

($32,000)

($36,000)

8.5 Projected Balance Sheet

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Table: Balance Sheet

Pro Forma Balance Sheet

FY 2012 FY 2013 FY 2014
Assets

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

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

Liabilities and Capital FY 2012 FY 2013 FY 2014

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

Long-term Liabilities $383 $783 $1,233

Total Liabilities $4,422 $5,756 $8,538

Paid-in Capital $421 $1,221 $2,421

Retained 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)

8.6 Business Ratios

Table: Ratios

Ratio Analysis
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 Beauty salon

FY 2012 FY 2013 FY 2014 Industry

Profile
Sales Growth n.a. 15.47% -10.81% 1.27%

Percent of Total Assets

Other 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 Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin -75.34% -106.76% -251.01% 75.39%
Selling, General & Administrative 2219.04% 2043.29% 2577.45% 30.08%
Expenses
Advertising Expenses 47.70% 45.05% 60.61% 2.46%
Profit Before Interest and Taxes -2291.20% -2140.32% -2808.84% 6.21%

Main Ratios
Current -9.72 -17.06 -18.74 1.46
Quick -9.72 -17.06 -18.74 1.28
Total 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 2014

Net Profit Margin -2294.38% -2150.05% -2828.46% n.a
Return on Equity 0.00% 0.00% 0.00% n.a

Activity Ratios
Accounts Payable Turnover 7.82 12.17 12.17 n.a
Payment Days 27 36 28 n.a
Total Asset Turnover 0.00 0.00 0.00 n.a

Debt Ratios
Debt to Net Worth 0.00 0.00 0.00 n.a
Current Liab. to Liab. 0.91 0.86 0.86 n.a

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

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Additional Ratios
Assets to Sales -20.42 -38.23 -69.13 n.a
Current Debt/Total Assets 0% 0% 0% n.a
Acid Test -9.72 -17.06 -18.74 n.a
Sales/Net Worth 0.00 0.00 0.00 n.a
Dividend Payout 0.00 0.00 0.00 n.a

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 Appendix

Table: Sales Forecast

Sales Forecast
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Sales
Hair $19 $23 $29 $49 $47 $51 $50 $48 $53 $52 $54 $57
Nail $15 $17 $23 $35 $38 $42 $40 $41 $43 $42 $44 $52
skin care $11 $13 $27 $40 $43 $48 $43 $46 $50 $47 $50 $56
Sale of professional $18 $21 $34 $41 $43 $44 $46 $43 $47 $46 $48 $54
hair/beauty products
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 Mar
Hair $31 $44 $55 $55 $66 $49 $73 $69 $76 $75 $79 $87
Nail $18 $21 $36 $30 $44 $45 $55 $55 $53 $51 $54 $64
Skin care $25 $32 $33 $35 $37 $40 $41 $45 $47 $48 $60 $71
Sale of professional $23 $36 $42 $43 $50 $55 $59 $61 $65 $69 $73 $79
hair/beauty products
Subtotal Direct Cost of $97 $133 $166 $163 $197 $189 $228 $230 $241 $243 $266 $301
Sales

Page 1
 Appendix

Table: Personnel

Personnel Plan
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Thierry $212 $234 $257 $283 $311 $342 $376 $414 $455 $501 $551 $606
Ola $388 $427 $470 $517 $569 $626 $689 $758 $834 $917 $1,009 $1,110
Oku $264 $290 $319 $351 $386 $425 $468 $515 $566 $623 $685 $754
Abdulrahman $318 $350 $385 $424 $466 $513 $564 $620 $682 $750 $825 $908
Total 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 Mar
Sales $63 $74 $113 $165 $171 $185 $179 $178 $193 $187 $196 $219
Direct Cost of $97 $133 $166 $163 $197 $189 $228 $230 $241 $243 $266 $301
Sales
Other Costs of $43 $47 $52 $57 $63 $69 $76 $84 $92 $101 $111 $122
Sales
Total Cost of $140 $180 $218 $220 $260 $258 $304 $314 $333 $344 $377 $423
Sales

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%
% %

Expenses
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
Marketing/Prom $43 $47 $52 $57 $63 $69 $76 $84 $92 $101 $111 $122
otion
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Rent $94 $103 $113 $124 $136 $150 $165 $182 $200 $220 $242 $266
Utilities $127 $140 $154 $169 $186 $205 $226 $249 $274 $301 $331 $364
Insurance $148 $163 $179 $197 $217 $239 $263 $289 $318 $350 $385 $424
Payroll Taxes 15 $177 $195 $215 $236 $260 $286 $315 $346 $381 $419 $461 $507
%
Other $219 $241 $265 $292 $321 $353 $388 $427 $470 $517 $569 $626

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 Appendix

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

Profit Before ($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 and ) ) ) ) ) ) ) ) ) ) ) )
Taxes
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 $1 $1 $2 $2 $3 $4 $5 $6 $7 $8 $10 $11
Expense
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 Mar
Cash
Received

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

Additional
Cash
Received
Sales Tax, 25.00 $16 $19 $28 $41 $43 $46 $45 $45 $48 $47 $49 $55
VAT, %
HST/GST
Received
New $45 $50 $55 $61 $67 $74 $81 $89 $98 $108 $119 $131
Current
Borrowing
New Other $19 $21 $23 $25 $28 $31 $34 $37 $41 $45 $50 $55
Liabilities
(interest-
free)
New Long- $18 $20 $22 $24 $26 $29 $32 $35 $38 $42 $46 $51
Page 5
 Appendix

term
Liabilities
Sales of $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other
Current
Assets
Sales of $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term
Assets
New $20 $22 $24 $26 $29 $32 $35 $38 $42 $46 $51 $56
Investment
Received
Subtotal $181 $206 $265 $342 $364 $397 $406 $422 $460 $475 $511 $567
Cash
Received

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

Expenditur
es from
Operations
Cash $1,182 $1,301 $1,431 $1,575 $1,732 $1,906 $2,097 $2,307 $2,537 $2,791 $3,070 $3,378
Spending
Bill $32 $953 $1,074 $1,201 $1,303 $1,450 $1,570 $1,747 $1,903 $2,081 $2,268 $2,494
Payments
Subtotal $1,214 $2,254 $2,505 $2,776 $3,035 $3,356 $3,667 $4,054 $4,440 $4,872 $5,338 $5,872
Spent on
Operations

Additional
Cash Spent
Sales Tax, $16 $19 $28 $41 $43 $46 $45 $45 $48 $47 $49 $55
Page 6
 Appendix

VAT,
HST/GST
Paid Out
Principal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Repayment
of Current
Borrowing
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Principal
Repayment
Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Principal
Repayment
Purchase $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other
Current
Assets
Purchase $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term
Assets
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal $1,230 $2,272 $2,534 $2,817 $3,077 $3,402 $3,712 $4,098 $4,488 $4,919 $5,387 $5,927
Cash Spent

Net Cash ($1,049 ($2,067 ($2,268 ($2,475 ($2,714) ($3,005) ($3,306) ($3,677) ($4,028) ($4,444) ($4,876) ($5,360)
Flow ) ) ) )
Cash ($1,049 ($3,116 ($5,385 ($7,860 ($10,57 ($13,57 ($16,88 ($20,56 ($24,58 ($29,03 ($33,90 ($39,268
Balance ) ) ) ) 3) 8) 4) 1) 9) 3) 9) )

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 Appendix

Table: Balance Sheet

Pro Forma
Balance
Sheet
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Assets Starting
Balance
s

Current
Assets
Cash $0 ($1,04 ($3,11 ($5,38 ($7,86 ($10,57 ($13,57 ($16,88 ($20,56 ($24,58 ($29,03 ($33,90 ($39,26
9) 6) 5) 0) 3) 8) 4) 1) 9) 3) 9) 8)
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current
Assets
Total $0 ($1,04 ($3,11 ($5,38 ($7,86 ($10,57 ($13,57 ($16,88 ($20,56 ($24,58 ($29,03 ($33,90 ($39,26
Current 9) 6) 5) 0) 3) 8) 4) 1) 9) 3) 9) 8)
Assets

Long-term
Assets
Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Accumulat $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
ed
Depreciatio
n
Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
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 Appendix

Long-term
Assets
Total $0 ($1,04 ($3,11 ($5,38 ($7,86 ($10,57 ($13,57 ($16,88 ($20,56 ($24,58 ($29,03 ($33,90 ($39,26
Assets 9) 6) 5) 0) 3) 8) 4) 1) 9) 3) 9) 8)

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

Current
Liabilities
Accounts $0 $917 $1,035 $1,157 $1,254 $1,398 $1,512 $1,684 $1,834 $2,006 $2,185 $2,402 $2,652
Payable
Current $0 $45 $95 $150 $211 $278 $352 $433 $522 $620 $728 $847 $978
Borrowing
Other $0 $19 $40 $63 $88 $116 $147 $181 $218 $259 $304 $354 $409
Current
Liabilities
Subtotal $0 $981 $1,170 $1,370 $1,553 $1,792 $2,011 $2,298 $2,574 $2,885 $3,217 $3,603 $4,039
Current
Liabilities

Long-term $0 $18 $38 $60 $84 $110 $139 $171 $206 $244 $286 $332 $383
Liabilities
Total $0 $999 $1,208 $1,430 $1,637 $1,902 $2,150 $2,469 $2,780 $3,129 $3,503 $3,935 $4,422
Liabilities

Paid-in $0 $20 $42 $66 $92 $121 $153 $188 $226 $268 $314 $365 $421
Capital
Retained $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Earnings
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
8) 6) 1) 9) 6) 1) 1) 7) 6) 0) 9) 1)
Total $0 ($2,04 ($4,32 ($6,81 ($9,49 ($12,47 ($15,72 ($19,35 ($23,34 ($27,71 ($32,53 ($37,84 ($43,69

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 Appendix

Capital 8) 4) 5) 7) 5) 8) 3) 1) 8) 6) 4) 0)
Total $0 ($1,04 ($3,11 ($5,38 ($7,86 ($10,57 ($13,57 ($16,88 ($20,56 ($24,58 ($29,03 ($33,90 ($39,26
Liabilities 9) 6) 5) 0) 3) 8) 4) 1) 9) 3) 9) 8)
and Capital

Net Worth $0 ($2,04 ($4,32 ($6,81 ($9,49 ($12,47 ($15,72 ($19,35 ($23,34 ($27,71 ($32,53 ($37,84 ($43,69
8) 4) 5) 7) 5) 8) 3) 1) 8) 6) 4) 0)

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